Karachi, August 06, 2018 (PPI-OT): JCR-VIS Credit Rating Company Limited (JCR-VIS) has revised the entity ratings of Shaheen Air International Limited (SAI) from ‘BBB/A-3’ (Triple B/ A- Three) to BB+/B (Double B Plus/ Single B). Outlook on the assigned ratings continues to be ‘Negative’. Previous rating action was announced on June 07, 2018.
Revision in ratings incorporates suspension in SAI’s domestic operations on account of dispute over payment of arrears totalling over Rs. 1.5billion. After incurring a sizeable loss in FY17, trend in losses have persisted in FY18. The management recently leased out few of its planes inducted last year on wet lease in order to reduce the financial burden. With suspension of domestic and select international operations, operating losses would persist weakening the liquidity profile and capitalization indicators.
For more information, contact:
CFA
JCR-VIS Credit Rating Company Limited
VIS House, 128/C,
25th Lane off Khayaban-e-Ittehad,
Phase VII, DHA, Karachi
Tel: +92-21-35311861-72
Fax: +92-21-35311873
Email: sobia@jcrvis.com.pk