Tata leadership transition, IPO unlikely to impact ratings, S&P Global says

Sept 29 (Reuters) - Potential leadership ‌transition and ​listing ​of Tata Sons would not immediately affect the ratings of the companies in the salt-to-software conglomerate, S&P ‌Global said on Tuesday, saying that changes to the ⁠financial policies are likely to be gradual.

The comments by the ratings agency ‌come amid a deepening boardroom ‌rift at India's Tata group, with controlling charities at odds with management over the reappointment of Chairman N Chandrasekaran and ​the response to a listing mandate for the holding company.

Tata Trusts have proposed a restructuring that could help Tata ⁠Sons avoid a listing after the central bank rejected the company's request to surrender ​its status as a large non-bank finance company.

Investors are closely tracking developments as a potential listing ​could unlock value for shareholders of ‌group companies that have stakes in the unlisted parent.

S&P said the group's rated companies are run ⁠by independent professional management teams, although Tata Sons continued to influence strategy.

S&P currently rates Tata Steel, Tata Motors, Tata Power, Tata Power Renewable ⁠Energy and Tata Capital at "BBB" with a stable outlook, while Tata Motors ​Passenger Vehicles has a "BBB" rating with a negative outlook. Jaguar Land Rover is rated "BBB-" with a negative outlook.

A routine listing of Tata Sons would ‌be credit-neutral in the near term, the ratings agency said.

However, over the longer term, public shareholding ‌could lead to greater scrutiny of capital allocation, shareholder returns ⁠and support for weaker group ‌companies, potentially affecting its ​assessment of group support, S&P said.

(Reporting by Kashish Tandon in Bengaluru; Editing by Ronojoy Mazumdar and Mrigank ‌Dhaniwala)

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