ICRA upgrades Jet Airways' rating to stable

MUMBAI: Credit rating agency ICRA on Thursday upgraded Jet Airways to BB or stable rating from ‘C’ which meant that the company was under the risk of defaulting on its loan payments.

The stock surged over 10 per cent on the Bombay Stock Exchange to Rs 296.55 in intraday trade on Friday.

“The rating upgrade takes into account the improvement in the liquidity and credit profile of the company, arising from improved operating performance as well as support from its strategic partner Etihad Airways,” the agency said in a statement.

Etihad had last year entered into a $600-million deal with Jet which included a 24% stake in the airline, purchase of its slots at London’s Heathrow airport and a majority stake in its privilege programme. Jet recognised part of the funds as a one-time gain to swing into a net profit of Rs 69.8 crore in July-September, after six loss-making quarters.