Shares of Jet Airways on Monday dropped nearly 6 per cent as ICRA has downgraded the airline’s long-term rating.
After a negative opening on the BSE, the scrip further declined 6.6 per cent to hit an intra-day low of Rs 258.05. At 2.15 pm, the stock was trading at Rs 260.10 apiece, down 5.83 per cent from the previous close. Similarly, on the NSE, the airline’s stock tumbled 6.5 per cent to an intra-day low of Rs 258.25.
Jet Airways, in a regulatory filing on Friday, had said that credit rating agency ICRA had downgraded the cash strapped air-carrier’s long-term ratings from ‘B’ to ‘C’. This has been the second such action by the agency since October. Instruments with ‘C’ rating are considered to have very high risk of default regarding timely servicing of financial obligations.
The rating downgrade considers delays in the implementation of the proposed liquidity initiatives by the management, as reflected in the delays in employee salary payments and lease rental payments to the aircraft lessors, the agency said.
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