Jet Airways Shares Fall 6 Per cent After ICRA Downgrades Rating
After a negative opening on BSE, the scrip further declined 6.04 per cent to hit an intra-day low of Rs 259.50. The stock was trading at Rs 260.55 apiece, down 5.67 per cent from the previous close.
New Delhi, December 10: Shares of Jet Airways Monday dropped nearly 6 per cent after the credit rating agency Icra downgraded the airline's long-term ratings. After a negative opening on BSE, the scrip further declined 6.04 per cent to hit an intra-day low of Rs 259.50. The stock was trading at Rs 260.55 apiece, down 5.67 per cent from the previous close. Similarly, on NSE, the airline's stock tumbled 5.88 per cent to an intra-day low of Rs 260.
Later, at 1259 hrs, the stock was trading 5.50 per cent lower at Rs 261.05. Jet Airways, in a regulatory filing Friday, 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. Jet Airways Cancelling 20-30 Flights Daily Due To Cash Crunch; Private Carrier Yet To Pay Salaries Of September.
Instruments with 'C' rating are considered to have very high risk of default regarding timely servicing of financial obligations, as per the agency. The rating downgrade considers delays in the implementation of the proposed liquidity initiatives by the management, further aggravating its liquidity, as reflected in the delays in employee salary payments and lease rental payments to the aircraft lessors, the agency said.