Mumbai: Jet Airways executives will meet credit ratings agency ICRA on
Monday, following Saturday's downgrade of its debt rating to 'D' from
'BB' after the airline failed to meet loan repayment schedule.
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 chief executive officer 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 million 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 nnual general meeting recently.
Read news in full 25/08/14 Economic Times
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 chief executive officer 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 million 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 nnual general meeting recently.
Read news in full 25/08/14 Economic Times
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