After solid second-quarter results, JLR may consider an unsecured issue to refinance a bond maturing this month, Joel Levington, director for credit research at Bloomberg Intelligence, wrote in a note.
Moody’s Investors Service, S&P Global Ratings and Fitch Ratings all still have a negative credit outlook for JLR due to risks including uncertainty around Brexit and the US threat of tariffs on car imports from Europe.
With the bulk of its manufacturing in the UK, JLR is the most exposed among automakers to a disorderly Brexit, according to Fitch.
Meanwhile, JLR’s Indian owner Tata Motors reported a narrower-than-expected loss helped by the stabilising sales in China. The company lost Rs 220 crore ($31 million) in the three months ended September against a loss of Rs 1,640 crore projected by analysts on average.