Shares of Jet Airways dropped nearly 5 per cent today after domestic rating agency Icra downgraded the airline's debt rating, saying it reflects delays in loan servicing by the company.
The stock of Jet Airways plunged 4.87 per cent to settle at Rs 232.65 on the BSE. During the day, the scrip declined by 5.13 per cent to Rs 232. At the NSE, the airline's scrip fell by 4.86 per cent to Rs 232.80.
In terms of volume, 3.09 lakh shares of the company changed hands at the BSE, while more than 12 lakh shares were traded at the NSE during the day.
Icra has categorised the airlines' two long-term and two short-term foreign currency loans valuing Rs 7,460 crore to 'D' rating from the earlier BB rating with a stable outlook.
"The rating revision reflects delays in debt servicing by the company," Icra had said in a statement.
"It is very disappointing that the recently published Icra downgrade is based on a historic delay in debt servicing, which occurred and was resolved in the previous financial year," a Jet Airways spokesperson had said in a statement yesterday without offering details.
There is no outstanding default in the repayment of dues to banks and financial institutions as of March 31, 2014, the spokesperson claimed.
