New Delhi

A potential listing of Tata Sons and a leadership transition at the Tata group are unlikely to have an immediate impact on the credit ratings of group companies, but could reshape the assessment of group support and financial policy over the longer term, S&P Global Ratings said.

S&P said changes in Tata’s financial policies were likely to be gradual given the group’s long history and conservative management approach. The agency currently considers several rated Tata companies strategically important to Tata Sons, resulting in up to three notches of group support. The rated companies include Tata Steel, Tata Motors, Tata Motors Passenger Vehicles, Tata Power, Tata Power Renewable Energy, Tata Capital and Jaguar Land Rover.

S&P said a change in leadership, group structure or stakeholder priorities could eventually raise questions about the continuity of the group’s strategy, financial policy and willingness to provide support to individual companies.

The issue could be particularly relevant for Tata Steel, Tata Power and Tata Capital, which have significant growth plans, while Jaguar Land Rover is undergoing a business transition.