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Care downgrades Cox and Kings rating to ‘default’ grade

On Wednesday, Cox & Kings defaulted on commercial paper of Rs 125 crore.

ETMarkets.com|
Jul 11, 2019, 09.34 PM IST
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Mumbai: Rating woes continued for Cox and Kings, as Care Ratings on Thursday downgraded the tour operator’s rating to ‘default’ grade, as it grappled with a cash crunch to service its debt and other obligations.

In an evening release, Cox and Kings said the ratings agency has downgraded issuer rating on Rs 1,750 crore long-term facilities and Rs 1,685 crore commercial paper to ‘D’, while it reaffirmed the company’s Rs 250 crore non-convertible debenture issue, and Rs 375 crore commercial papers at ‘D’ or default rating.

On Wednesday, Cox & Kings defaulted on commercial paper of Rs 125 crore, a third default of the company in the past fortnight, totaling Rs 325 crore.

Shares of Cox & Kings were locked in lower circuit for 12th straight session, down 5 per cent at Rs 23.20.

Its shares have eroded 71 per cent of its market value over the last one month, and shares are trading at a fresh low.

On July 1, Cox and Kings defaulted on a commercial paper, and have been witnessing a slew of rating downgrades as it grapples with a liquidity crisis.
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