Care Ratings downgrades ratings of Cox & Kings' long-term facilities, commercial paper

New Delhi: Travel firm Cox & Kings on Thursday said Care Ratings has downgraded ratings of the company’s long-term facilities and a commercial paper issue totalling Rs 3,445 crore to the status of being in or expected to be in default. [caption id=“attachment_6013191” align=“alignleft” width=“380”] Representational image. Reuters.[/caption] The rating agency has also reaffirmed the same status of being in default or is expected to be in default on the company’s Rs 250 crore non-convertible debenture issue and another commercial paper issue of Rs 375 crore, Cox & Kings said in a regulatory filing. The company said its long-term facilities of Rs 1,760 crore have been downgraded from CARE C to CARE D rating, which denotes instruments that are in default or are expected to be in default, it added. A commercial paper issue of Rs 1,685 crore has also been downgraded from CARE A4 ratings that denotes instruments carry very high credit risk and are susceptible to default to CARE D rating. The downgrading of the company’s debt ratings comes at a time when Cox & Kings is struggling to resolve the temporary cash flow mismatch that led to a default on payments and has said that it will approach lenders to work out some time-bound programme to meet this emergency. Shares of Cox & Kings closed at Rs 23.20 per scrip on the BSE, down 4.92 percent from its previous close.