S&P Global Ratings has given Tata Motors (BOM:500570) and its subsidiaries a BBB long-term issuer credit rating, according to a recent release.

The auto company's leading position among India's commercial vehicle market will continue, especially with strong economic growth and supportive infrastructure and construction spending, the rating agency said.

Positive free cash flow and low leverage should continue due to operating cash flow amply covering spending in the next three years, S&P said.

S&P also considers the company's proposed acquisition of Iveco Group as credit neutral with resilient business competitiveness offsetting a rise in leverage.

However, the company's single market focus and a smaller revenue scope compared to global peers constrain its strengths, S&P said.

The outlook is stable, driven by a solid balance sheet position in the next two years and anchored by stable operating metrics.

Notable shifts in leverage and financial policy could prompt future rating actions, S&P said.