Fitch Ratings reaffirmed Tata Capital Ltd’s long-term foreign and local currency issuer default ratings (IDRs) at ‘BBB-’ with a Stable Outlook. The rating reflects strong shareholder support from Tata Sons Pvt Ltd, underscoring Tata Capital’s strategic importance within the Tata Group’s financial services portfolio.
Rating Details:
Tata Capital’s long-term foreign and local currency IDRs remain at ‘BBB-’, with a Stable Outlook. The Shareholder Support Rating (SSR) was also affirmed at ‘bbb-’.
Strategic Importance:
The rating is underpinned by expectations of extraordinary support from Tata Sons, which owns 85.4% of Tata Capital and views it as the largest entity in its financial services business.
Market Context:
Tata Capital’s diversified non-bank finance operations, including lending and leasing, are seen as critical growth drivers for the Tata Group.
Industry Impact:
The affirmation strengthens investor confidence in Tata Capital’s stability, aligning with India’s broader financial sector resilience amid global uncertainties.
Why It Matters
The rating affirmation highlights Tata Capital’s strong backing from Tata Sons, ensuring financial stability and strategic relevance. It reinforces the company’s credibility in global markets, supporting future growth in lending, leasing, and financial services.
Sources: Fitch Ratings Release, CNBC TV18, The Hindu BusinessLine