Crisil Keeps Credit Rating Of Thomas Cook India Unchanged
Crisil has kept the credit rating of Thomas Cook (India) Ltd. unchanged, saying it has no linkage with bankrupt Thomas Cook Plc in the U.K.
"CRISIL's credit bulletin dated Sept. 26, communicated to Thomas Cook (India) Ltd., reflects that the ratings of Thomas Cook (India) Ltd. remain unaffected as the bankruptcy of Thomas Cook PLC in U.K. has no linkage with Thomas Cook (India) Ltd.," the ratings agency said in a statement.
The bulletin has elaborated that Thomas Cook (India) is a completely separate entity from Thomas Cook U.K. post acquisition of 77 percent stake by Canada-based Fairfax Financial Holdings in 2012.
While TCIL is a brand licensee of 'Thomas Cook' brand in India, there exists no shareholding or business linkage between the two companies, it said.
"Hence, CRISIL believes that the liquidation of the U.K.-based entity should not have a material impact on TCIL's credit profile," it added.
While the brand has been licenced to TCIL until November 2024, TCIL is evaluating various options, including transitioning to a new brand.
"CRISIL's credit bulletin retains Thomas Cook India's rating reflecting the company's dominant position in the foreign exchange business and strong brand equity in travel-related services, a comfortable capital structure, and adequate liquidity," it said.