March 27, 2019 / 4:35 PM / 3 months ago

S&P cuts Jaguar Land Rover credit rating on Brexit worries

LONDON, March 27 (Reuters) - S&P said on Wednesday it has downgraded its credit rating on Jaguar Land Rover, Britain’s biggest carmaker, even deeper into junk and put it on review for a possible further downgrade due to the growing risks of a no-deal Brexit and U.S. import tariffs.

Jaguar is owned by India’s Tata Motors Ltd.

S&P cut its rating on Jaguar’s senior unsecured notes to ‘B+’ from ‘BB-‘ following the company’s weaker-than-expected third quarter results.

It said it could lower the rating further, most likely by one notch, if the carmaker fails to meet the base-case expectations for full-year results, the UK government crashes out of the EU without a deal or Washington slaps new import tariffs on cars.

Fitch ratings agency also put Jaguar under review in early February. (Reporting by Josephine Mason; Editing by Susan Fenton)

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