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Delays in debt servicing by Jet Airways has prompted credit rating agency ICRA to downgrade its bank facilities to default grade.
The agency, in a statement, said it has revised the rating assigned to the private carrier's Rs 3,210 crore long-term, fund-based bank facilities to 'D' from 'BB'.
Instruments with 'D' rating are either in default or are expected to be in default soon.
Instruments with 'BB' rating carry moderate risk of default regarding timely servicing of financial obligations.
ICRA has also revised the rating assigned to the airline's Rs 4,250 crore short-term, fund/ non-fund based bank facilities to 'D' from 'A4'.
Instruments with 'A4' rating carry very high credit risk and are susceptible to default.
Founder Naresh Goyal owns 50 per cent stake in Jet while Etihad Airways owns 24 per cent.
According to the ICRA statement, Jet Airways' net loss widened to Rs 3,668 crore in the year-ended March 31, 2014 as against a net loss of Rs 485.50 crore in the year ago period.
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