SpiceJet's credit ratings upgraded to BB (Stable) and A4+ amid strong financial recovery

The rating agency pointed to SpiceJet's revival strategy, which includes introducing new leased aircraft in the coming months, nearly tripling daily flights to 280, and reactivating its own previously grounded aircraft

SpiceJet has received its second credit rating upgrade within a month, reflecting the airline's strengthened credit profile, improved liquidity, and steadfast commitment to financial discipline. Acuité Ratings & Research has raised the airline's long-term credit rating to BB (Stable) from BB- (Stable), while reaffirming the short-term rating at A4+.

In a statement, Acuité, a SEBI-registered credit rating agency, highlighted that SpiceJet's ongoing fleet expansion, successful settlement agreements with key lessors, and robust operational plans were key drivers behind the upgrade.

Earlier, Acuité had upgraded the airline's long-term rating to BB- (Stable) and short-term rating to A4+. After reviewing additional information and clarifications provided by SpiceJet, the agency has now further elevated the long-term rating to BB (Stable).

The rating agency pointed to SpiceJet's revival strategy, which includes introducing new leased aircraft in the coming months, nearly tripling daily flights to 280, and reactivating its own previously grounded aircraft. The recent settlement with Carlyle Aviation Partners is expected to enhance liquidity by providing cash credits for future aircraft and engine maintenance, along with restructuring lease debt by converting a portion into airline ownership.

Acuité also praised the airline's experienced leadership and diversified revenue model, led by Chairman and Managing Director Ajay Singh, who brings over 15 years of aviation experience and a successful track record in turnaround management.

Debojo Maharshi, Chief Business Officer of SpiceJet, stated, "The consecutive upgrades in our credit ratings affirm SpiceJet's sustained efforts to fortify its financial foundation and chart a resilient growth path. With new aircraft inductions, restructured lessor agreements, and a focused strategy on profitability and expansion, we are well-positioned to enhance operations, improve customer experience, and generate long-term value for our stakeholders."

The agency further noted that the airline's growing fleet and diversified revenue streams are expected to support revenue growth over the near- to medium-term.