Jet Airways tanks 7% as ICRA downgrades long-term loans
NEW DELHI: Shares of Jet Airways plunged 7 per cent in Friday’s trade after rating agency ICRA downgraded long-term loans of the company.
ICRA said it has downgraded long-term loans and non-convertible debentures of the company to ICRA B (negative outlook) from ICRA BB.
The stock fell 7.36 per cent to hit a low of Rs 182.60 on BSE.
The rating agency attributed the downgrade primarily to the steep increase in jet fuel prices and rupee depreciation. Besides, it noted that there has been delays in implementation of liquidity initiatives by the company.
ICRA though reaffirmed short-term rating has been at ICRA A4.
The cash-strapped airline has in the past failed to pay salaries to its employees.
The recent decision by the government to impose 5 per cent customs duty on ATF, a major component of an airline's operational costs, is seen to add to the company’s woes.
ICRA said it has downgraded long-term loans and non-convertible debentures of the company to ICRA B (negative outlook) from ICRA BB.
The stock fell 7.36 per cent to hit a low of Rs 182.60 on BSE.
The rating agency attributed the downgrade primarily to the steep increase in jet fuel prices and rupee depreciation. Besides, it noted that there has been delays in implementation of liquidity initiatives by the company.
ICRA though reaffirmed short-term rating has been at ICRA A4.
The cash-strapped airline has in the past failed to pay salaries to its employees.
The recent decision by the government to impose 5 per cent customs duty on ATF, a major component of an airline's operational costs, is seen to add to the company’s woes.