In a significant boost, Acuité Ratings & Research upgraded SpiceJet’s long-term rating by 4 notches to B+ from D and short-term rating to A4, the airline said in a statement on November 4.
The airline was also assigned a ‘stable’ outlook by the rating agency, the statement added.
The shares of the company were trading 3.65 percent lower at Rs 59.33 on BSE at 12:21 pm on November 4.
According to the statement, the improvement in rating reflects SpiceJet’s strengthened financial position and its ability to secure assets through financial leases.
Ajay Singh, chairman and managing director of SpiceJet, said, “We are delighted with Acuité’s upgrade of our credit rating by four notches. This is a testament to our relentless efforts to strengthen our financial position and improve operational efficiency. The upgraded rating will provide us with greater financial flexibility, enabling us to invest in our fleet, network, and customer experience. We remain committed to providing affordable air travel to millions of Indians and contributing to the growth of the Indian aviation industry.”
Singh further said that the company believes it's just a ‘beginning of positive developments’ as the airline moves to stabilise its operations.
SpiceJet had recently raised Rs 3,000 crore via a qualified institutional placement (QIP) as a pivotal point in its financial recovery initiative. In addition to the capital raised through the QIP, SpiceJet is also set to receive Rs 736 crore from a previous funding round.
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