Standard & Poor's issues warning on Tata Sons

Mumbai: Amidst the ongoing tussle between the Tata Sons and its ousted chairman Cyrus Mistry, global rating agency Standard & Poor's on Monday said the continuing discord has created uncertainty at the board level, which could lead to slow decision-making in some of the group firms. However, on an optimistic note, the rating agency said the group firms are all professionally managed and will continue to deliver on their business and financial plans despite the recent developments.

“In our assessment, we consider Tata Sons as an unlisted investment holding company for the promoter group and do not factor in any direct support in assessing the credit profiles of individual ratings. We expect the Tata group to continue to manage and run the rated group companies independently with professional management, without intermingling funds. We will review our assessment if we see greater control of Tata Sons over the board, strategy, and cash flows of individual companies,” S&P Global said.