S&P places Tata Group companies on creditwatch positive

Singapore, August 20 : S&P Global Ratings on Friday placed the long-term issuer and issue credit ratings on Tata Steel Ltd, Tata Motors, ABJA Investment Co Pte Ltd, TML Holdings Pte Ltd and Jaguar Land Rover Automotive Plc on creditwatch with positive implications.
The creditwatch signals that S&P could potentially reassess relationship between these Tata Group entities and the holding company Tata Sons Pte Ltd (unrated), the potential for extraordinary support from Tata Sons, and therefore the ratings on these group entities.
"We regard the credit quality of Tata Sons to be strongly investment grade," said S&P. We believe Tata Sons and its subsidiaries and associates have become more cohesive in recent years."
Previously, S&P said it considered Tata Sons as an unlisted investment holding company for the group and did not factor in any direct support in assessing the credit profiles of the individual group companies.
"Although we believe the various group companies still operate independently under professional directors and management, we observe a greater influence of Tata Sons on the strategy and financial policies of the group."