CRISIL reaffirms Thomas Cook India’s corporate credit rating

Published on : Thursday, November 28, 2019

The CRISIL Credit Ratings, dated November 22, 2019, communicated to Thomas Cook 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 that 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.”




About Thomas Cook (India) Limited: Set up in 1881, Thomas Cook (India) Ltd. (TCIL) is the leading integrated travel and travel related financial services company in the country offering a broad spectrum of services that include Foreign Exchange, Corporate Travel, MICE, Leisure Travel, Insurance, Visa and Passport services and E-Business. It operates leading B2C and B2B brands including Thomas Cook, SOTC, TCI, SITA, Asian Trails, Allied T Pro, Australian Tours Management, Desert Adventures, Luxe Asia, Kuoni Hong Kong, Sterling Holiday Resorts Limited, TC Forex, Distant Frontiers, TC Tours, TC Visa, Travel Circle International Limited, Ithaka, Digiphoto Entertainment Imaging (DEI), Private Safaris East & South Africa.




As one of the largest travel service provider networks headquartered in the Asia-Pacific region, The Thomas Cook India Group spans 29 countries across 5 continents, a team of over 9700 and a combined revenue in excess of Rs. 6718.7 Cr. (over $ 0.96 Bn.) for the financial year ended March 31, 2019.




TCIL has been felicitated with The Best Travel Agency – India at TTG Travel Awards 2019, The Best Outbound Tour Operator at the Times Travel Awards 2018 & 2019 and Leading Company with Cutting Edge Travel Innovation at the Times Travel Awards 2018, Best Risk Management-Framework & Systems at the India Risk Management Awards 2019; Best Cash Management Solution – India at the Asset Triple A Treasury, Trade, Supply Chain & Risk Management Awards 2018, Excellence in Domestic Tour Operations at the SATTE Awards 2018, Best Travel Entrepreneur of The Year at TTG Travel Awards 2017, The French Ambassador’s Award for Exemplary Achievements in Visa Issuance – 2015 to 2018 and the Condé Nast Traveller – Readers’ Travel Awards from 2011 to 2018.




CRISIL has reaffirmed the rating on debt programmes and bank facilities of Thomas Cook (India) Ltd at ‘CRISIL AA-/Stable on the long-term bank facilities of TCIL and CRISIL A1+ rating on the short-term bank facilities and short- term debt of the Company.

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