Icra cuts ratings on Jet Airways' borrowing programmes

Rating agency Icra Tuesday downgraded long term ratings of Jet Airways' borrowing programmes, citing deterioration in the airline's financial performance.

The full services carrier has been grappling with financial woes.

The long-term ratings of the airline's borrowing programmes have been downgraded to "BB from BB+ with negative outlook", Icra said in a release.

'BB' indicates moderate risk of default.

According to the agency, the downgrade considers the continued deterioration in the operating and financial performance of the company because of its inability to pass on the increase in jet fuel prices to the customers.

"The airline industry continues to face headwinds of rising fuel costs and weak pricing power due to excess competition.

"This is expected to result in a further weakening of the company's performance in the near term," it added.