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Jet Airways, rating agencies under scanner for lapses in loan status disclosure

The concerned loan accounts have reportedly been standardised now but they were allegedly in default on multiple occassions during the quarter ended June 30. They are on the watch list of the lenders, according to regulatory officials.

NMF News Bureau | Updated: 14 Aug 2018, 11:07:51
Jet Airways (Pic: Wikimedia Commons) Jet Airways (Pic: Wikimedia Commons)

New Delhi: In yet another trouble for crisis-hit Jet Airways, the airline and some rating agencies are under regulatory scanner for alleged lapses in timely disclosing default risk of loans worth Rs 11,000 crore taken from state-owned and private sector banks, according to officials.

The concerned loan accounts have reportedly been standardised now but they were allegedly in default on multiple occassions during the quarter ended June 30. They are on the watch list of the lenders, according to regulatory officials.

The credit rating agencies' officials say that they have been going by the month-end status report the airline had submitted and in which they had said that there was no default.

With reference to a recent statement by SBI’s Chairman on the status of the loan account, ICRA said the Jet Airways management has confirmed in writing that that it “is regular in all its payments to all banks”. “We are also checking on the conduct of the account independently from banks,” ICRA said in response to PTI queries. SBI Chairman Rajnish Kumar had said last week that the bank’s exposure to Jet Airways was part of a “watch list”.

“In case of all accepted ratings, our ratings on the bank lines of Jet Airways also remain under regular surveillance and we would respond to any new information subject to the necessary due diligence and confirmation from bankers/lenders/issuers,” an ICRA official said.

“We would also like to highlight that we have been regularly receiving the no default declaration (NDS) in the Sebi prescribed format from the company at the end of every month, and we have received the NDS for the month ended July 2018 as well,” he added. In May, ICRA had lowered credit ratings on Jet Airways’ long-term loan facilities to BB+, which indicates moderate default risk.


First Published: 14 Aug 2018, 11:07:51

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