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This upgrade is just the beginning of a series of positive developments as we continue to stabilise operations and deliver on our commitments to investors, says SpiceJet CMD Ajay Singh.
Spicejet says the improved credit rating not only reflects SpiceJet’s strengthened financial position but also enhances its ability to secure assets through financial leases.
SpiceJet on Monday said it has received a significant boost, with Acuité Ratings & Research Limited upgrading its long-term rating by four notches to ‘B+’ and its short-term rating to A4. The rating agency has also assigned a ‘Stable’ outlook to the airline.
“This remarkable four-notch upgrade highlights SpiceJet’s sustained efforts towards financial stability, operational resilience, and strategic growth initiatives,” SpiceJet said in a statement.
The improved credit rating not only reflects SpiceJet’s strengthened financial position but also enhances its ability to secure assets through financial leases, a move that provides the airline with greater flexibility and cost advantages. This step is aligned with SpiceJet’s ongoing commitment to expanding its fleet, improving operational efficiency, and delivering enhanced travel experiences to its passengers, it added.
Ajay Singh, chairman and managing director of SpiceJet, said, “We are delighted with Acuité’s upgrade of our credit rating by four notches. This is a testament to our relentless efforts to strengthen our financial position and improve operational efficiency. The upgraded rating will provide us with greater financial flexibility, enabling us to invest in our fleet, network, and customer experience. We remain committed to providing affordable air travel to millions of Indians and contributing to the growth of the Indian aviation industry.”
This upgrade is just the beginning of a series of positive developments as we continue to stabilise operations and deliver on our commitments to investors, Singh added.
The upgrade in the rating takes into account improved liquidity position with the infusion of funds through QIP. The company has raised Rs 3000 crore through QIP (Qualified Institutional Placement) in September 2024. The major investors include Goldman Sachs, Morgan Stanley, Nomura Singapore, etc., according to a note by Acuite.
Acuite added that the company has planned to utilise this fresh QIP proceeds to pay off the statutory dues, settlement with their lessors, employee salaries, general corporate expenses, ungrounding of fleet, expansion by adding new aircraft, etc. as per their revival plan committed to the investors.
Shares of SpiceJet were trading down by 4.19 per cent at Rs 59.09 apiece on the BSE at of 11:21 am.
