CRISIL’s Bulletin Reflects Thomas Cook India’s Dominant Position in the Forex Business and Strong Brand Equity in Travel-Related Services

CRISIL’s credit bulletin dated September 26, 2019, communicated to Thomas Cook (India) Ltd. and uploaded on its portal, reflects that the ratings of Thomas Cook (India) Ltd. remain unaffected as the bankruptcy of Thomas Cook PLC in United Kingdom has no linkage with Thomas Cook (India) Ltd.

The bulletin further elaborates that Thomas Cook (India) Ltd. (TCIL) is a completely separate entity from Thomas Cook UK post acquisition of 77% 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. Hence, CRISIL believes that the liquidation of the UK-based entity should not have a material impact on TCIL’s credit profile.

Further, that TCIL has also communicated through various releases that it is a completely separate entity from Thomas Cook UK. While the brand had been licenced to TCIL until November 2024, TCIL has now bought the 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.

Madhavan Menon, Chairman & Managing Director, Thomas Cook (India) Ltd., said, “CRISIL’s credit bulletin is both a reiteration of the strong leadership, as also the sound financial position of the independent Thomas Cook India Group since its acquisition by Fairfax Financial Holdings in 2012.”