New Delhi: A couple of days after acquiring the British premium car brands Jaguar and Land Rover, Tata Motors was today removed from the watch with negative implications category by rating agency Crisil.

"Crisil has revised its ratings on Tata Motors Ltd's cash credit facilities to AA-/stable and has removed them from Rating Watch with Negative Implications," the agency said in a statement.

The development follows Tata Motors entering into a definitive agreement with Ford Motor Company for the purchase of brands, plants and intellectual property rights pertaining to Jaguar and Land Rover, it said.

Tata Motors shares today closed 1.41 per cent down at Rs 645.95 each on the Bombay Stock Exchange.

Projecting a stable outlook for Tata Motors, the agency said it expects the company to maintain its credit profile over the medium term, supported by its market position in the domestic CV, passenger car and UV segments.

"The rating will continue to be constrained by weak market position and low profitability of the Jaguar and Land Rover operations," it said.

Crisil noted that outlook could be revised to positive if these operations demonstrates improved profitability. But, if the improvement in profitability takes more time than expected, the outlook could be revised to negative.

The rating agency expects Tata Motors business profile to change significantly following the acquisition and said that more than half of Tata Motors total consolidated revenues are expected to be generated by JLR, which cater to the high-end luxury car segment in the US and European markets.
Source : PTI