Mumbai: CRISIL has kept the credit rating of Thomas Cook (India) Ltd unchanged, saying it has no linkage with bankrupt Thomas Cook plc in the UK.
“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 UK has no linkage with Thomas Cook (India) Ltd,” the ratings agency said in a statement.
The bulletin has elaborated that Thomas Cook (India) Ltd (TCIL) is a completely separate entity from Thomas Cook UK post acquisition of 77 per cent 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 UK-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.