New Delhi, October 5: Credit rating agency ICRA has downgraded the long-term rating assigned to the borrowing programme of Jet Airways to B from BB. The ICRA has reaffirmed the short-term rating of Jet Airways at A4. The outlook on the long-term rating is negative, ICRA said.

According to the ICRA, a B rating goes for instruments “considered to have a high risk of default regarding timely servicing of financial obligations.”

Jet Airways has been facing a financial crisis that has led to pay-cuts for employees and cost-cutting measures at the flyers' end. In a recent lifeline, Etihad Airways greenlighted JPPL, Jet's Frequent Flyer Programme which is majority-owned by Etihad, to enter into an agreement that will provide Jet immediate liquidity of USD 35 million to help it meet some of its current obligations including staff salaries.

Etihad Airways had acquired a 50.1 per cent stake in Jet Airways loyalty program 'Jet Privilege' in 2014 for USD 150 Million. Jet Privilege is Jet Airway's loyalty program which allows Frequent Fliers to redeem miles accrued for discounted seats on Jet Airways and other code share partners.

(The above story first appeared on LatestLY on Oct 05, 2018 10:15 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).