Moody’s Changes Tata Motors Outlook to Negative, Affirms Ba1 Rating

Moody’s Ratings has affirmed the Ba1 corporate family rating of Tata Motors Ltd. but revised the outlook to negative from positive, the ratings agency said in a release Monday.

The Ba1 affirmation reflects Moody’s view that Tata Motors may be able to withstand the impact of a cyber incident that has disrupted operations at the company and its UK-based subsidiary Jaguar Land Rover Automotive Plc.

Jaguar Land Rover, Britain’s largest carmaker owned by Tata since 2008, was hit by a cyberattack in early September that forced factory shutdowns across most regions. The automaker has three plants in the UK producing about 1,000 vehicles per day, and operations remained shut for nearly a month. The UK government has since agreed to underwrite a £1.5 billion loan guarantee to support the company. Media reports said JLR has also been unable to produce vehicles at facilities in Slovakia, Brazil, and India.

The outlook revision reflects Moody’s assessment that recovery in credit metrics will take several months. The agency estimates JLR’s production halt will cut Tata Motors’ consolidated EBITDA to about $850 million for 2025-2026, compared with an earlier forecast of around $3.0 billion. It also expects higher working capital requirements to push cash flow from operations into negative territory this fiscal year.

Despite the production halt, JLR continues to face weekly cash outflows of about $675 million, mainly for supplier payments and wages. Moody’s noted this burn is likely to moderate as supplier dues ease, while sales from inventory of around 25,000 vehicles should provide near-term relief.

With the negative outlook, an upgrade is unlikely over the next 12-18 months. The outlook could be revised to stable if JLR’s prospects improve, Moody’s added.