Tata Motors hopes better rating
After getting downgraded by rating agencies, Tata Motors is now hopping for a better rating after announcement of a new refinancing plan. But this may take a few months altogether. The refinance plan is expected as Tata Motors clinched a major acquisition deal with Ford to own the Jaguar and Land Rover. Tata Motors have paid 2.3 billion dollars for the deal. Eventually, the deal will be financed through a mixture of debt and equity.
Last week, Crisil, a rating agency, downgraded ratings on the auto major's cash credit facilities from 'AA+' to 'AA-/stable'. But the agency has removed Tata Motors from 'Rating Watch with Negative Implications' list. The auto major has taken a USD 3 billion bridge loan to take over the two iconic brands and meet the working capital requirements with a combination of debt, liquidation of existing investments. The company also plans to raise a fresh equity of USD 1 billion.
Labels: Auto market competition, Ford, Jaguar and Land Rover, Tata Motors
1 Comments:
Tata's are always in news,Nano's is still on the pages of news papers and now we hear about their deals of the luxury brands Jaguar and Land Rover. Wonder once this news goes stale, what will be the newer one?
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