India's second largest airline Jet Airways has been assigned an investment grade rating (BBB-) by credit rating agency ICRA (an affiliate of Moody’s).
ICRA has upgraded the long term rating of Jet Airways’ Non-Convertible Debenture programme and fund based facilities to [ICRA] BBB – (ICRA triple B minus) from [ICRA] BB (ICRA double B). The outlook on the long term rating is stable.
The agency has also upgraded the rating of Jet Airways’ short term fund based and non-fund based facilities to [ICRA] A3 from [ICRA] A4.
As per the Rating Rationale released by ICRA, this upgradation in the long term and short term ratings reflects the improving liquidity and credit profile of the company, arising from improved operating performance in the current year.
The ratings also take into account the strategic initiatives being undertaken by Jet Airways and the benefits of synergies with its partner Etihad Airways to enable it to return to sustainable profitability.
Speaking on the upgrade, Amit Agarwal, Chief Financial Officer, Jet Airways said, "This ratings upgrade is a true reflection of our strong operational and financial performance and the demonstrable progress made in our turnaround plan. The upgrade reaffirms Jet Airways’ sustainable growth oriented approach, robust revenue enhancement, cost control, deleveraging initiatives and a healthy liquidity position”.
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