MUMBAI (Bloomberg) - Tata Motors Ltd., the owner of Jaguar Land Rover, had its credit rating raised by Moody's Investors Service for the second time this year as sales of its vehicles increased.
The corporate family rating on Tata Motors was increased to Ba3, three levels below investment grade, from B2, Moody's said Tuesday. The rating company also changed the outlook on Mumbai- based Tata Motors to stable from positive.
“The rating upgrade reflects the recovery in the operating performance of the Jaguar Land Rover business exceeding our expectations,” Alan Greene, an analyst at Moody's, said in a statement. Tata Motors is “seeing a solid recovery in its Indian business,” Moody's said.
Tata Motors boosted sales of its vehicles, including Jaguar luxury cars and Land Rover SUVs, by 19 percent in September. Net income may surge to 14.4 billion rupees ($324 million) in the second quarter ended Sept. 30, from 217.8 million rupees a year earlier, according to the average of 17 analyst estimates compiled by Bloomberg.
The company, also India's biggest truckmaker, said Oct. 12 that it raised $750 million selling shares overseas to pare debt. Tata Motors said Monday it will report earnings on Nov. 9.