SpiceJet gets CRISIL A4+ rating over restructuring plans, capital raising ability

The ratings agency highlighted the airline’s revival plan that includes ungrounding 10 aircraft by early 2026 and the finalisation of damp lease agreements of 18 aircraft, giving a 2.5X capacity boost.

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26 Aug, 2025 12:21

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Ratings agency Crisil has assigned CRISIL A4+ rating to SpiceJet, identifying its restructuring plans, capital raising abilities and adequate liquidity as key strengths, the airline said in a statement on October 13.

“We are pleased that CRISIL has acknowledged SpiceJet’s sustained efforts to strengthen its financial and operational performance. Over the past year, we have focused on disciplined financial management, and this recognition reaffirms our commitment to building a stronger and more resilient airline, well-positioned for sustainable growth,” said Debojo Maharshi, chief business officer, SpiceJet.

The new rating follows two consecutive upgrades by Acuité Ratings & Research, showing growing confidence in the low-cost airline’s revival and growth strategy.

Acuité, in September, had upgraded the airline’s long-term credit rating to ‘BB (Stable)’ from ‘BB-(Stable)’. It had also reaffirmed short-term rating at ‘A4+’, after an update in August.

“Furthermore, the company has also shown ability to raise capital by raising Rs 3,000 crore through a QIP, which was utilised for payment of statutory dues, settlement of outstanding liabilities of creditors including aircraft and engine lessors and engineering vendors, and ungrounding and maintenance of existing fleet,” the ratings agency said in a note.

The ratings agency highlighted the airline’s revival plan that includes ungrounding 10 aircraft by early 2026 and the finalization of damp lease agreements of 18 aircraft, giving a 2.5X capacity boost.

In addition, the airline’s operating profitability is likely to improve further with increased capacity deployment during peak season, the agency said.

“SpiceJet's liquidity position appears adequate, with the company holding Rs 333 crore in free cash and equivalents, supplemented Rs 150 crore of restricted cash. The availability of these funds, combined with anticipated steady cash accrual, is expected to be sufficient to cover operational expenses, debt repayment, and lease obligations.”