CRISIL Ratings has reaffirmed its long-term rating at ‘CRISIL AA/Stable’ and its short-term rating at ‘CRISIL A1+’ for Thomas Cook India Limited. The reaffirmation reflects the company’s strong support from its parent, Fairfax Financial Holdings Ltd, its leadership in the travel and foreign-exchange segments, and its resilient business model despite market volatilities. The ratings also consider the company’s adequate capital structure and strong liquidity.
CRISIL Reaffirms Key Ratings for Thomas Cook India
CRISIL Ratings has officially reaffirmed the credit ratings for Thomas Cook India Limited (TCIL). The long-term rating for the company’s facilities has been affirmed at ‘CRISIL AA/Stable’, while the short-term rating remains ‘CRISIL A1+’. These ratings apply to TCIL’s bank facilities, corporate credit rating, and commercial paper programme. The reaffirmation was issued on September 21, 2026.
Key Strengths Supporting Ratings
The reaffirmation is underpinned by several key strengths. A significant factor is the strong support from its parent, Fairfax Financial Holdings Ltd, which is rated ‘A-/Stable’ by S&P Global Ratings. TCIL benefits from Fairfax’s strategic importance and regular funding support. Furthermore, TCIL maintains a strong business risk profile, characterized by its leadership in the travel and foreign-exchange sectors, and a healthy presence in leisure hospitality and digital imaging solutions. The company’s diversified operations across various travel-related services contribute to its resilience.
Financial Health and Liquidity
TCIL’s financial standing is supported by an adequate capital structure. As of March 31, 2026, adjusted gearing was a comfortable 0.36 times. The company also boasts strong liquidity, with cash and short-term investments amounting to approximately ₹2,650 crore as of June 30, 2026. This liquidity is expected to adequately cover its capital expenditure and debt repayment obligations over the medium term.
Outlook and Potential Challenges
The outlook for TCIL remains stable, with expectations of continued benefit from demand for travel and related services, and its strong market position. However, the company is susceptible to adverse events such as geopolitical tensions, pandemics, and intense competition within the travel industry, which can affect demand and profitability. The proposed demerger of the hospitality segment is also noted as a factor that may moderate consolidated scale and margins in the future.
Source: BSE
