‘Thomas Cook (India) and Thomas Cook (UK) are different entities’
MUMBAI: CRISIL’s bulletin on Thursday (September 26) has underlined the financial strength of Thomas Cook India Ltd at a time when news of Thomas Cook UK’s bankruptcy is grabbing headlines.
The bulletin has sent the message across 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.
While the brand has been licenced to TCIL until November 2024, TCIL said it is evaluating various options including transitioning to a new 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
The bulletin further elaborates that Thomas Cook (India) Ltd (TCIL) is a completely separate entity from Thomas Cook UK post acquisition of 77 per cent 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,” a Thomas Cook India release said.
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.