Crisil has downgraded its ratings on the bank facilities and debt programmes of Thomas Cook India Limited (TCIL) to ‘Crisil A+/CCR A+/Negative/Crisil A1’ from ‘Crisil AA-/CCR AA-/Negative/Crisil A1+'.
The rating action reflects the weakening of TCIL's business and financial risk profiles owing to the adverse impact of the Covid-19 pandemic on the travel and tourism industry. 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 ₹200 crore reported as on March 31, 2020), Crisil said.