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The debt crisis in Dubai is having a cascading effect on the company’s risk profile
Credit rating agency CRISIL has downgraded Global Aviation Services Pvt Ltd’s Rs20-crore bank facilities to ‘P3’ from ‘P3+’ after the company lost an online station cargo service contract from its top customer, Emirates. The outlook remains ‘negative’.
CRISIL has also downgraded Global Airport & Ground Services Pvt Ltd’s proposed Rs10 crore long-term bank loan facility to ‘BBB-’ from ‘BBB/Stable’.
The company has lost two of its top customers Emirates and Finnair over the last six months, both of which contributed 80% to its total cargo commission income in 2008-09.
According to company officials, the debt crisis in Dubai has affected the company’s business. Emirates is owned by the Investment Corp of Dubai, which is controlled by the Dubai government.
Global Aviation Services is a part of the Global Group which provides services in airline ticketing, ground handling, logistics, foreign exchange, legal assistance, revenue accounting, interline negotiations, cargo and courier consolidation, road-feeder services, and publicity through its associate companies.