Credit-rating agency ICRA has downgraded Jet Airways' debt to "D" rating from "BB" after it "got information" on payments by the airline.
According to Icra's rating scales, "Instruments with 'D' rating are in default or are expected to be in default soon."
"Indeed Jet has been downgraded to "D" rating because of cases of defaults. We have been informed of the same by financial institutions and the airline's auditors," said Naresh Takkar, managing director and CEO of of the agency. He didn't elaborate on the amount Jet had defaulted on.
The rating may make it difficult for the cash-strapped airline to raise additional loans. It recently raised $150 miilion worth of soft loans with help from its strategic partner Etihad Airways. The Abu Dhabi-based airline owns 24% of Jet.
Jet's debt which was Rs 10,576 crore in end March reduced to Rs 9,807 crore in end June, its vice president finance N Ravichandran said in the airline's annual general meeting recently.
23/08/14 Anirban Chowdhury/Economic Times
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According to Icra's rating scales, "Instruments with 'D' rating are in default or are expected to be in default soon."
"Indeed Jet has been downgraded to "D" rating because of cases of defaults. We have been informed of the same by financial institutions and the airline's auditors," said Naresh Takkar, managing director and CEO of of the agency. He didn't elaborate on the amount Jet had defaulted on.
The rating may make it difficult for the cash-strapped airline to raise additional loans. It recently raised $150 miilion worth of soft loans with help from its strategic partner Etihad Airways. The Abu Dhabi-based airline owns 24% of Jet.
Jet's debt which was Rs 10,576 crore in end March reduced to Rs 9,807 crore in end June, its vice president finance N Ravichandran said in the airline's annual general meeting recently.
23/08/14 Anirban Chowdhury/Economic Times
