Jet Airways has been assigned a BBB- investment grade rating by credit rating agency ICRA. ICRA has upgraded the long term rating of Jet Airways’ non-convertible debenture programme and fund based facilities to BBB- from BB. The agency has also upgraded the rating of Jet Airways’ short term fund based and non-fund based facilities to A3 from 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.
Amit Agarwal, chief financial officer, Jet Airways said, “This upgrade is a 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.”
