CRISIL reaffirms Thomas Cook India’s corporate credit rating at ‘CCR AA-’

CRISIL reaffirms Thomas Cook India’s corporate credit rating at ‘CCR AA-’

Additionally, reaffirms its ratings on the debt programmes and bank facilities of Thomas Cook India at ‘CRISIL AA-/Stable/CRISIL A1+’

Wednesday, November 27, 2019: The CRISIL Credit Ratings, dated November 22, 2019, communicated to Thomas Cook (India) Ltd., and uploaded on its portal, has reaffirmed its corporate credit rating of ‘CCR AA-/ stable’ to Thomas Cook (India) Ltd. (TCIL). Additionally, CRISIL has reaffirmed its rating on the debt programmes and bank facilities of Thomas Cook (India) Limited at ‘CRISIL AA-/Stable/CRISIL A1+’.

In its ratings rationale, CRISIL has highlighted, “Thomas Cook India is a completely separate entity from Thomas Cook PLC post acquisition of a 77% stake by Canada based Fairfax Financial Holdings in 2012. Also, that there are no shareholding or business linkage between the two companies.” Hence, CRISIL believes, “the liquidation of the UK based entity should not have a material impact on TCIL’s credit risk profile.”

CRISIL has reiterated, “The Thomas Cook India Group’s financial flexibility is expected to remain healthy, given strong cash and equivalents in the foreign exchange and travel businesses, aided by the omni-channel business model with extensive outreach and absence of any major long-term debt and capital expenditure over the medium term.”

CRISIL’s credit bulletin retains Thomas Cook India’s rating reflecting the Company’s healthy business risk profile, driven by its dominant position in the foreign exchange business and strong brand equity in travel-related services, a comfortable capital structure, and strong liquidity.

Mr. Madhavan Menon, Chairman & Managing Director, Thomas Cook (India) Ltd., said, “CRISIL’s reaffirmed ratings continue to reiterate independent Thomas Cook India’s sound financial position and strong leadership. The reaffirmation comes close to the announcement of Thomas Cook India’s completion of the demerger of our Human Resource Services Business India into Quess Corp; the demerger of the inbound business of Travel Corporation India into SOTC Travel and the amalgamation of the residual Travel Corporation India Ltd, TC Travel Services Ltd and TC Forex Services Ltd. with Thomas Cook India.” 

He reiterated, “With the realignment of the travel businesses of TCIL & consolidation of the human resource services business into Quess Corp., the CRISIL reaffirmation serves as a further reassurance to our customers and stake-holders of our dominant position in the forex business, strong brand equity in the travel-related services and sustained growth trajectory that Thomas Cook India continues to chart.”

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