Indian agency downgrades Jet Airways’ debt rating

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Jet Airways has had its credit ratings downgraded by India’s ICRA Rating agency.

The biggest downgrade came to its short-term, fund-based limits and non-fund based limits instruments, which were previously rated A4. Its long-term loans and long-term fund-based limits were cut from BB stable to D.

“The ratings revision reflects delays in debt servicing by the company,” says ICRA Rating, which is affiliated with Moody's Investor Services.

In response to the downgrade, Jet Airways said in a statement: “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.”

It adds that the airline is “current on all its loan obligations and interest payments.”

Jet has received assistance from 24% shareholder Etihad Airways to cut down and restructure its debt, in addition to the $379 million it paid for the stake last year.

The Indian carrier recently reported a Rs1.17 billion ($18.8 million) loss during the first quarter, an increase of 9% on the same period last year.