The prospect of Tata acquiring Jaguar and Land Rover - two of the most prestigious brands in the global automotive industry - has been greeted enthusiastically in India.
But the sub-continent's money markets are not so keen.
India ratings agency Crisil, part of Standard & Poor's global network, has put Tata's £526 million non-convertible debentures and cash credit facilities on "negative watch" following last week's announcement that it was in detailed talks with Ford over its bid, which is thought to be worth about £1 billion. Cisil believes that, if successful, the acquisition would give Tata Motors access to the luxury car sector and to advanced technology.
But its analysts are concerned that it would incur a high level of debt that would adversely affect its risk profile in the short to medium-term.
Consolidated revenues will be driven by the acquired businesses where Tata Motors "has yet to build and demonstrate its capabilities", Cisil said.