Mahindra & Mahindra (M&M), a passenger, commercial and utility vehicles maker, has been assigned BBB- long term corporate credit rating with a Stable Outlook by Standard & Poor's Ratings Service (S&P).

S&P's rating reflects the company's leading market position in tractor and utility vehicle (UV) segments, strong financial ratios, and financial flexibility arising out of significant investments in group companies. This rating action of S&P is based on M&M's conservative leverage policies, healthy cashflow generation and the market leading position in Indian Tractor and UV industries, risk mitigation through presence in various businesses with a pan-India footprint and a good mix of rural and urban customers.

Anand Mahindra, chairman, Mahindra Group,  said, ''S&P's rating is an important event in M&M's 70 year history. To add, the investment grade ratings from S&P demonstrates a unanimous vote of confidence in M&M’s diversified business model, stellar credit profile and high standards of corporate governance practices. We certainly celebrate the ratings as a worthy  milestone in M&M group's global aspirations.''

V.S Parthasarathy, Group CFO, Group CIO & President (Group Finance and M&A), Member of the Group Executive Board, Mahindra & Mahindra, said,  ''S&P's investment grade rating provides assurance in double measure to the stakeholders of M&M who have always reposed faith in its conservative and robust financial policies. The rating will serve to enhance M&M's prestige in the international capital markets. The investment grade rating is a validation of our management vision and we hold it dear  as  a commitment to the path  of excellence.''

M&M has been assigned Baa3 ratings by Moody's recently. With S&P's and Moody's ratings, M&M will now enjoy dual investment grade ratings which are equivalent to India’s investment grade sovereign ratings from both the above agencies.

M&M has been already assigned the highest credit rating of AAA by all four leading domestic credit rating agencies, CRISIL, India Ratings, ICRA and CARE.

Shares of the company declined Rs 3.7, or 0.29%, to trade at Rs 1,271.90. The total volume of shares traded was 6,983 at the BSE (12.30 p.m., Tuesday).