New Delhi, Oct 5 : Rating agency ICRA has downgraded the long-term rating assigned to the borrowing programme of Jet Airways to B from BB.
ICRA has reaffirmed the short-term rating of Jet Airways at A4. The outlook on the long-term rating is Negative.
While BB rating is considered to have moderate risk of default regarding timely servicing of financial obligations, B rating is considered to have high risk of default regarding timely servicing of financial obligations.
This is the third rating downgrade in five months for the beleaguered carrier.
The rating downgrade considers the delays in the implementation of the proposed liquidity initiatives by the management, further aggravating its liquidity strain. The company continues to witness deterioration in its operating and financial performance because of the steep increase in jet fuel prices and rupee depreciation and its inability to pass on the same to the customers,” Icra said in its report.