Moody's Downgrades Tata Motors Amid JLR Cyber Crisis

Moody's Ratings dealt a blow to Tata Motors on Monday by downgrading its outlook from positive to negative. This development comes on the heels of a cyber attack on the company's British subsidiary, Jaguar Land Rover (JLR), which has ceased production.

This rating change reflects concerns regarding Tata Motors' financial recovery, predicting a drawn-out process to rebound. Sweta Patodia, an Analyst at Moody's Ratings, highlighted that the issue sheds light on customer relations risks encapsulated under social risk considerations as part of the ESG framework.

Moody's estimates that JLR's suspended production will slash Tata's EBITDA projections for FY25-26 from approximately USD 3 billion to around USD 850 million. Nonetheless, partial resumption of manufacturing and existing inventory sales may provide some relief.