Travel firm Cox & Kings Thursday said Care Ratings has downgraded ratings of the company's long-term facilities and a commercial paper issue totalling Rs 3,445 crore to status of being in or expected to be in default.
The ratings agency has also reaffirmed the same status of being in default or is expected to be in default on the company's Rs 250 crore non-convertible debenture issue and another commercial paper issue of Rs 375 crore, Cox & Kings said in a regulatory filing.
The company said its long-term facilities of Rs 1,760 crore have been downgraded from CARE C to CARE D rating, which denotes instruments that are in default or are expected to be in default, it added.
A commercial paper issue of Rs 1,685 crore has also been downgraded from CARE A4 ratings that denotes instruments carry very high credit risk and are susceptible to default to CARE D rating.
The downgrading of the company's debt ratings comes at a time when Cox & Kings is struggling to resolve the temporary cash flow mismatch that led to default on payments and has said that it will approach lenders to work out some time-bound programme to meet this emergency.
Shares of Cox & Kings closed at Rs 23.20 per scrip on the BSE, down 4.92 per cent from its previous close.
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