Mumbai, Crisil Ratings on Thursday raised its outlook on long-term bank facilities and corporate credit rating (CCR) of Thomas Cook India (TCIL) to 'positive' from 'stable'.
The rating agency has also affirmed the 'CRISIL AA-/Positive CRISIL A1+' rating, CRISIL Ratings said in its report.
The revision in outlook follows S&P Global Ratings' rating upgrade on the debt facilities of parent company Fairfax Financial Holdings (Fairfax) to 'BBB+/Positive' from 'BBB/Watch Positive'.
It said the rating upgrade by S&P Global Ratings was due to strong strengthening of Fairfax's capital adequacy at end-2023, enhanced by strong earnings and diversification credit under its revised criteria.
Additionally, the rating action also takes into account the improvement in the overall operating performance of the Thomas Cook India Group, driven by strong growth in revenues, which is expected to continue over the medium term, and structural reduction in costs, Which will provide better operating margins and returns. On capital employed.
It said the company's financial risk profile has also improved following continued improved operating performance, as reflected in its adequate capital structure and strong liquid surplus.
The rating agency has also affirmed the 'CRISIL AA-/Positive CRISIL A1+' rating, CRISIL Ratings said in its report.
The revision in outlook follows S&P Global Ratings' rating upgrade on the debt facilities of parent company Fairfax Financial Holdings (Fairfax) to 'BBB+/Positive' from 'BBB/Watch Positive'.
It said the rating upgrade by S&P Global Ratings was due to strong strengthening of Fairfax's capital adequacy at end-2023, enhanced by strong earnings and diversification credit under its revised criteria.
Additionally, the rating action also takes into account the improvement in the overall operating performance of the Thomas Cook India Group, driven by strong growth in revenues, which is expected to continue over the medium term, and structural reduction in costs, Which will provide better operating margins and returns. On capital employed.
It said the company's financial risk profile has also improved following continued improved operating performance, as reflected in its adequate capital structure and strong liquid surplus.
