The continued improvement in TML's credit profile comes on the back of strengthening profitability and free cash flow that have enabled the company to reduce its borrowings despite elevated capital expenditure. As a result, the company's leverage, as measured by debt/Ebitda, has declined below 4x as of March 2023, said Kaustubh Chaubal, a Moody's Senior Vice President. Chaubal, who is Moody's Lead Analyst for Tata Motors, added that the rating upgrades and positive outlook are underpinned by TML's conservative financial policies that balance growth with prudent debt management, which will support a further improvement in its credit profile over the next 12 to 18 months.