CRISIL keeps Thomas Cook India credit rating unchanged

The CRISIL credit rating rationale has assigned Thomas Cook India (TCIL) corporate credit rating of ‘CCR AA-’. Additionally, CRISIL has reaffirmed its ratings on the debt programmes and bank facilities of TCIL at ‘CRISIL AA-/Stable/CRISIL A1+’. This announcement further reflects that the ratings of TCIL. remain unaffected as the bankruptcy of Thomas Cook in the UK has no linkage with Thomas Cook India.

The ratings continue to reflect the group’s healthy business risk profile, driven by a dominant position in the forex business and strong brand equity in travel-related services; comfortable capital structure; and strong liquidity.

Madhavan Menon, chairman and managing director of TCIL said: “CRISIL’s assigned and reaffirmed ratings continue to reiterate the strong leadership and financial position of the independent Thomas Cook India Group since its acquisition by Fairfax Financial Holdings in 2012.The report further highlights key strengths including its dominant position in the forex business and strong brand equity in travel-related services along with its comfortable capital structure.”

CRISIL CCR is a globally recognised rating of an issuer, indicating its degree of strength and ability to honour its debt obligations. Previously, on September 26, 2019, CRISIL’s credit bulletin, which was communicated to TCIL and uploaded on its portal, had presented a stable outlook for the debt programmes and bank facilities of TCIL, with its ratings remaining unaffected by the bankruptcy of Thomas Cook in the UK.