Luxury carmaker Jaguar Land Rover (JLR) has retained its Baa1 credit rating from Moody’s but faced a downgrade in outlook from positive to negative, driven by a severe cyber incident that has brought production to a near halt. The cyberattack, which began on August 31, 2025, has forced the suspension of manufacturing at its UK plants and significantly disrupted its global supply chain.
Key Highlights From Moody’s Rating Change
Moody’s affirmed JLR’s Baa1 issuer rating but shifted the outlook to negative due to the sustained operational impact of the cyberattack.
The attack has caused production to stand still across JLR’s facilities in the West Midlands and Merseyside, with an expected several-week timeline for full restoration.
JLR’s initial response includes a phased restart plan with cautious restoration of IT networks to ensure security and minimize further disruption.
The rating agency highlighted risks to revenue generation, profitability, and cash flow amid the ongoing recovery.
Operational And Financial Impact
Since the attack, JLR lost production at a rate costing over £50 million weekly, affecting not only in-house manufacturing but also thousands of jobs in its extensive supplier network.
The shutdown has triggered government intervention, including a £1.5 billion loan guarantee to support the company's and suppliers' viability.
Despite the setback, JLR management remains engaged with cybersecurity experts and authorities, aiming for a secure, full operational rebound.
Industry-Wide Cybersecurity Wake-Up Call
This incident underscores the heightened risks modern manufacturers face from cyber threats, disrupting interconnected supply chains.
Experts warn of increasing sophistication in cyberattacks targeting major industrial players, emphasizing robust cybersecurity investments.
Outlook And Recovery Path
Moody’s negative outlook reflects these operational challenges but also anticipates JLR’s resilience based on its brand strength, management capabilities, and ongoing recovery efforts.
Source: BBC, Jaguar Land Rover official statements, Moody’s, Reuters
