Cash strapped-Jet Airways' shares fall 6% after ICRA downgrades airline's long-term ratings

New Delhi: Shares of Jet Airways on Monday dropped nearly 6 percent 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 percent to hit an intra-day low of Rs 259.50.

The stock was trading at Rs 260.55 apiece, down 5.67 percent from the previous close.

Representational image. Reuters

Representational image. Reuters

Similarly, on NSE, the airline's stock tumbled 5.88 percent to an intra-day low of Rs 260.

Later, at 1259 hrs, the stock was trading 5.50 percent lower at Rs 261.05.

Jet Airways, in a regulatory filing on 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.

Instruments with 'C' rating are considered to have a 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.

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Updated Date: Dec 10, 2018 13:50:49 IST

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