Crisil Ratings upgrades outlook on Thomas Cook India to 'positive'

Crisil Ratings on Thursday revised its outlook on the long-term bank facilities and corporate credit rating (CCR) of Thomas Cook India (TCIL) to 'positive' from 'stable'.

The rating agency has also reaffirmed the ratings at 'CRISIL AA-/Positive CRISIL A1+', Crisil Ratings said in its report.

The revision in outlook follows the rating upgrade on the loan facilities of the parent Fairfax Financial Holdings (Fairfax) by S&P Global Ratings to 'BBB+/Positive' from 'BBB/Watch positive'.

The rating upgrade by S&P Global Ratings was due to material strengthening in Fairfax's capital adequacy at 2023-end, boosted by strong earnings and diversification credit under its revised criteria, it added.
 

Besides, the rating action also factored in improvement in the Thomas Cook India group's overall operating performance, driven by strong growth in revenue, which is expected to be sustained over the medium term, and structural reduction in cost, leading to better operating margin and return on capital employed.

The financial risk profile of the company has also improved, following sustained better operating performance, as reflected in its adequate capital structure and strong liquid surpluses, it added.