Mumbai: Credit rating agency Icra on Friday downgraded cash-strapped Jet Airway's long-term ratings from 'B' to 'C', the second such action by it since October. The short-term ratings have, however, been reaffirmed to 'A4'. The rating downgrade considers delays in the implementation of the proposed liquidity initiatives by the management, further aggravating its liquidity, as reflected in the delays in employee salary payments and lease rental payments to the aircraft lessors, the agency said.
Significantly, the Naresh Goyal-promoted full-service carrier has been in the red since the March quarter of the previous fiscal. Facing severe liquidity crunch, the airline has been defaulting on payment of salaries to its senior staff, including pilots and engineers since August as well as to some of the vendors.