Jet Airways shares slump 4.8 per cent on Icra debt downgrade

Jet Airways shares slumped 4.8 per cent after Icra downgraded 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.

According to Icra rating scale, instruments with 'D' rating are in default or are expected to be in default soon.

"The ratings revision reflects delays in debt servicing by the company," Icra said.

Reacting to the development, shares of the Jet Airways plunged 4.87 per cent to Rs 232.65 on the Bombay Stock Exchange and 4.84 per cent to Rs 232.85 on the National Stock Exchange.

Terming the agency's statement as "disappointing", a Jet Airways spokesperson had said executives of the budget carrier are expected to meet the rating agency.

"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. Airline representatives will meet the agency on Monday to set the record straight," a Jet Airways spokesperson had said in a statement on Sunday 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 added.