Covid-19 impact: CRISIL downgrades Thomas Cook India's rating to A+

The ratings are a result of the pandemic weakening the company's business and financial risk profiles

Rating agency CRISIL has downgraded Thomas Cook India Ltd’s (TCIL) bank facilities from “AA-” to “A+” on the weakening of the company’s business and financial risk profiles due to Covid-19 pandemic.

The continued travel restrictions and negative customer sentiments have severely impacted leisure and corporate travel, and the foreign exchange (forex) business. This may lead to operating losses during fiscal 2021 and substantially reduce the net free cash (over Rs 200 crore reported as on March 31, 2020), CRISIL said in a statement. TCIL is part of Prem Watsa controlled Fairfax Financial Holdings Ltd (Fairfax) group.

During the first quarter (June 2020)