Jet Airways ratings downgraded to 'D' by ICRA
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 AGM.
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 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.
In its annual report for the last fiscal year, there were mentions of defaults worth Rs 90,860 crore for 30 days, Rs 20,502 crore for 30-60 days and Rs 22,245 crore for 61 days and beyond.
"All the aforesaid amounts are paid as on the balance sheet date," it added however.
When contacted, Jet said "it is very disappointing that the recently published ICRA downgrade is based on a historic delay in debt servicing, which occurred and was resolved in the previous financial year,"
"In fact, there were no outstanding default in the repayment of dues to the financial institutions and banks as at 31 March 2014. Jet Airways can confirm that the airline is current on all its loan obligations and interest payments," it said.
Executives from the airline representatives will meet the agency on Monday "to set the record straight" it said.
Jet posted a net loss of Rs 217.65 crore for the first quarter of the current financial year, down from Rs 355.38 crore a year earlier.