Cox & Kings hits fresh all-time low on Care's default rating

NEW DELHI: Shares of Cox & Kings fell for the 13th straight session to hit an all-time low of Rs 22.05 on Friday after rating agency Care downgraded the tour operator’s rating to ‘default’ grade.

The battering on the counter has been such that the scrip has ended higher only in two sessions since June 3, as the cash crunch-hit company is finding it difficult to service its debt obligations. The fresh rating action came in after the company defaulted on commercial paper of Rs 125 crore, a third default of the company in the past fortnight, totaling Rs 325 crore.

On Friday, the scrip fell 5 per cent intraday. The company’s market value now stood less than Rs 400 crore.


In an evening release, Cox and Kings said the ratings agency has downgraded issuer rating on Rs 1,750 crore long-term facilities and Rs 1,685 crore commercial paper to ‘D’, while it reaffirmed the company’s Rs 250 crore non-convertible debenture issue, and Rs 375 crore commercial papers at ‘D’ or default rating.