“Standard & Poor’s Ratings Services has kept its ‘BB’ corporate credit rating on Tata Motors on creditwatch with negative implications, pending finalisation of the long-term financing plans for funding the purchase of Jaguar and Land Rover from Ford Motor Co,” the global rating agency said in a statement.

The rating on Tata Motors was lowered to ‘BB’, from ‘BB+’ on April 4, after the announcement of the agreement with Ford Motor for the purchase of Jaguar and Land Rover.

“To fund the initial transaction, Tata Motors raised short-term bridge facilities of three billion dollar, which it plans to repay through a mix of fresh equity infusion, liquidation of investments, and long-term debt,” Standard & Poor’s credit analyst Anshukant Taneja said.

Tata Motors has obtained board’s approval to raise up to 1.05 billion dollar through a rights issue of equity shares, up to 750 million dollar of optionally convertible preference shares, and 500-600 million dollar through a separate issuance of securities in overseas markets.

Tata Motors acquired the British marquees for 2.3 billion dollar from Ford Motor Co in a landmark deal that made the Indian company the only vehicle maker to offer a choice of cars, spanning from the ultra cheap Nano to the luxurious Jaguar.

The company has paid about 2.3 billion dollar in cash for Jaguar and Land Rover, comprising brands, plants, and intellectual property rights.

Ford has contributed 600 million dollar to the Jaguar-Land Rover (JLR) pension plans.