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ICRA upgrades rating assigned to Jet Airways’ term loans and long term fund based limits

01 Dec 2011 Evaluate

ICRA has revised the rating assigned to Jet Airways’ (India) Rs 2,460.0 crore term loans and Rs 750.0 crore long term fund based limits of from BBB- to BB+.  The outlook on the long-term rating is stable. The credit rating agency has also revised the rating assigned to the Rs 1,920.0 crore funds based and Rs. 2,330.0 crore non-fund based limits of Jet Airways from A3 to A4+.

The ratings revision incorporates the significant deterioration in the financial profile of the airline on the back of increased losses as a result of intense competitive pressures in the domestic aviation sector, rising jet fuel costs on cost structure and steep rupee depreciation on significant forex liabilities.

The ratings are constrained by Jet Airways’ weak credit profile characterized by high leverage, low cash accruals, stretched coverage indicators and delays in fund raising plans of the company. However, the ratings continue to derive support from Jet Airways’ leadership position in the Indian airline industry, sustained growth momentum in passenger traffic, cost control measures initiated by the company and a strong network on domestic and international routes.

Jet Airways (I) Share Price

34.04 0.00 (0.00%)
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