Crisil upgrades Tata Motors, Leyland

By Our Corporate Bureau | 30 Sep 2004

1

Mumbai: Crisil has upgraded the ratings of Tata Motors and Ashok Leyland. The rating upgrade, Crisil said, is driven by significant improvement in Tata Motors Ltd's financial risk profile, which it is expected to sustain in the medium term.

This improvement is aided by the stronger-than-expected performance of the commercial vehicle industry in 2004-05 and 2005-06 and the company's successful placement of its $400 million foreign currency convertible bond issue.

"The FCCB issue enhances Tata Motors's financial flexibility and provides it with significant low-cost funds, part of which has a high probability of being converted into equity (about $100 million)," Crisil said in a news release.

Crisil has upgraded the rating on Ashok Leyland Limited's non-convertible debenture programme because of the significant improvement in its financial risk profile, which it is likely to sustain over the next few years.

The company's foreign currency convertible bond issue of $100 million significantly enhances Ashok Leyland's financial flexibility as it provides it with extremely low-cost funds, which it can use to fund its capital expenditure plans and acquisitions, if any.

Business History Videos

History of hovercraft Part 3...

Today I shall talk a bit more about the military plans for ...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of hovercraft Part 2...

In this episode of our history of hovercraft, we shall exam...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Hovercraft Part 1...

If you’ve been a James Bond movie fan, you may recall seein...

By Kiron Kasbekar | Presenter: Kiron Kasbekar

History of Trams in India | ...

The video I am presenting to you is based on a script writt...

By Aniket Gupta | Presenter: Sheetal Gaikwad

view more