InterGlobe Aviation’s (IndiGo) long-term rating has been downgraded by ICRA by a level to A from A+ as the outlook remains negative. This downgrade comes after the airline reported its highest-ever quarterly loss in April-June period. The short-term rating has been reaffirmed at A1, said the company in a regulatory filing.
The ICRA has acknowledged the company’s strong market position, cost competitiveness and healthy liquidity profile among its peers. It additionally attributed the downgrade to the prolonged disruption caused by the pandemic, and expects the airline to remain adversely impacted in the near term with gradual passenger traffic recovery and yields.
“The company continues to make all its payments including lease related payments and service its debt on time. Regardless of all the challenges, the company's focus throughout the pandemic has been to manage its cash levels, improve its cost structure, run a high-quality airline with highly engaged employees and position itself for the future,” said the airline.