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India's ICRA ups Tata Motors debt rating to 'LAA+'

BOMBAY, Dec 18 (Reuters) - Rating agency ICRA Ltd on Thursday upgraded its rating on Tata Motors Ltd's long-term debt to 'LAA+' from 'LAA'.

This represents an upgrade within the high safety category.

"The significant improvements in its cost structure resulting in substantial lowering of break even volumes and higher than expected growth achieved in first half of 2003-04 is expected to result in further lowering of financial risk profile and consequent improvement of capital structure and coverage indicators," ICRA said in a statement.

ICRA also said that the company is well positioned to withstand the cyclical nature inherent in the auto industry.