Friday, October 05, 2018

ICRA downgrades Jet Airways’ rating

Mumbai: Credit rating agency ICRA on Thursday said it has downgraded Jet Airways’ long-term borrowing programme, highlighting yet again the acute financial crisis India’s second-biggest airline is facing.

It downgraded the long-term rating for the airline’s borrowing programme to B from BB. According to ICRA’s Web site, a B rating translates into instruments “considered to have high risk of default regarding timely servicing of financial obligations.” The earlier rating of BB signified a moderate risk of default.
The rating was assigned to Jet’s Rs 698.9-crore, non-convertible debenture programme, Rs 4,970 crore of long-term loans, Rs 645 crore of long-term, fund-based facilities, and Rs 700 crore of long-term and non-fund based facilities. ICRA reaffirmed the short-term rating assigned to the airline’s Rs 3,950-crore short-term, non-fund based facilities at A4, which means a “minimal degree of safety regarding timely payment of financial obligations,” according to the Web site. “Such instruments carry very high credit risk and are susceptible to default.”
05/10/18 Economic Times