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Informist, Tuesday, Sept. 29, 2026

NEW DELHI – A potential listing of Tata Sons, the holding company of Tata group companies, and leadership transition at the group will have no immediate impact on S&P Global's ratings on its entities, the rating agency said in a report Tuesday. Any changes in the Tata group's financial policies are expected to be gradual, it said.

The Tata group has a long history and a conservative management approach, S&P Global Ratings said. "We view the rated entities as run by independent professional, management teams, although Tata Sons does influence their strategy," it added.

Currently, S&P Global has a 'BBB' rating on Tata Steel Ltd., Tata Motors Ltd., Tata Power Co. Ltd., Tata Power Renewable Energy Ltd., and Tata Capital Ltd., with a 'stable' outlook. It has a 'BBB' rating on Tata Motors Passenger Vehicles Ltd., with a negative outlook. The agency has a 'BBB-' rating on Jaguar Land Rover Automotive PLC, with a 'negative' outlook.  

However, the leadership transition or changes in the group structure are expected to raise concern around the continuity of its strategy and financial policy over the long term, S&P Global said. This is particularly relevant as the rated companies such as Tata Steel, Tata Power, and Tata Capital have significant growth plans, and Jaguar Land Rover is going through a business transition, it added. Due to the Tata group's conservative financial policy, the credit profiles of these companies have also improved in the last few years.

According to the agency, a routine listing of Tata Sons in its current form should be neutral for the group companies. "However, Tata Sons going public could have implications on our assessment of group support should the introduction of public shareholders further increase scrutiny of investment decisions, capital allocation, and support for weaker group entities," it said in the report. Additionally, given the size of Tata Sons' initial public offering, it will take several years for the proportion of public shareholders to become significant.

S&P Global's current assessment of group support relies on Tata Sons being a single, key controlling entity that derives its strength from its ownership in multiple, diversified companies, the agency said. It assesses Tata Sons' credit quality to be solidly investment grade. However, any change in structure that makes a clear controlling entity less obvious or weakens the holding company's credit profile could affect its view of the group's credit quality, and thereby, the notch up for individual ratings, S&P Global said.

Tata Trusts, which collectively hold 66% stake in Tata Sons Pvt. Ltd., Monday said they have proposed rejigging the structure of Tata Sons so that it remains neither a non-banking finance company nor a core investment company. The trusts have proposed merging Tata Electronics Systems Solutions Pvt. Ltd. and Tata Consulting Engineers with Tata Sons. This proposal came weeks after Tata Trusts Chairman Noel Tata was outvoted at a meeting of the Tata Sons board on the reappointment of N. Chandrasekaran as chairman of the holding company. The board of Tata Sons voted in favour of reappointing Chandrasekaran as their chief for a third five-year term and to take steps to comply with the central bank's directive to list the company. Both moves were vehemently opposed by the Tata Trusts.  End

Reported by Devanshu Singla

Edited by Akul Nishant Akhoury

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