New Delhi, Jul 9 (IANS): Global ratings agency Standard & Poor's (S&P) Monday it has revised upward its rating on Tata Motors to 'BB' from 'BB-' due to the improved business and financial risk profile of the company.

"We upgraded Tata Motors because we believe the company's competitive position and cash flow stability have improved," Standard & Poor's said in a statement.

"Tata Motors' dominant position in the growing Indian commercial vehicle market and Jaguar Land Rover's improving competitive position support the company's business risk profile," said Standard & Poor's credit analyst Abhishek Dangra.

Business risk profile of Tata Motor's subsidiary Jaguar Land Rover has improved to "fair" from "weak", Standard & Poor's said adding the company's liquidity is "adequate".

"The positive outlook reflects our expectation that Tata Motors will sustain its operating performance and maintain its debt protection measures, despite an increase in engineering and product development expenditure at Jaguar Land Rover," said Dangra.