CRISIL withdraws SpiceJet rating; firm in non-cooperating category

SpiceJet terminated the contract with CRISIL after the rating firm had downgraded the company's bank loan facilities on July 7 citing deterioration in liquidity profile

Low cost airline SpiceJet and rating agency CRISIL have sparred over rating given to the company’s bank loan facilities. The airline said that they had already terminated the contract with CRISIL and had tied up with Acuite Ratings. Hence, it was not obliged to share details after the rating agency said that SpiceJet was non-cooperative in providing details for rating exercise.

The impasse highlights the difficulty rating agencies face to maintain hygiene as an increasing number of companies refuse to share the exact picture of their financials as stress created by Covid-19 reflects on their credit quality.

CRISIL yesterday said