IndiGo Ratings: Improvement Claims Tested Amid Disruption Scrutiny

InterGlobe Aviation Limited (IndiGo) announced on December 8, 2025, that CRISIL Ratings Limited has placed its long-term (CRISIL AA-) and short-term (CRISIL A1+) ratings on "Rating Watch with Developing Implications." This decision follows widespread flight cancellations attributed to operational challenges from new Flight Duty Time Limitation (FDTL) norms, technical glitches, and adverse weather, impacting the airline's financial and operating performance.

Concurrently, Moody's Investor Services, Inc. issued an Issuer Comment affirming IndiGo’s Baa3 stable issuer rating, but highlighted that the temporary exemption from new FDTL regulations is offset by lapses in planning. Moody's downgraded IndiGo's human capital issuer category score to 4 from 3 and its governance issuer category score to 3, citing management’s lack of preparedness and the potential for financial damage from lost revenue and penalties.

Despite the disruptions, IndiGo's strong market position, operational profitability track record, and healthy financial risk profile, including net debt to EBITDAR ratio of 1.8 times for the trailing twelve months ending September 2025, are acknowledged as mitigating factors. The Ministry of Civil Aviation has directed IndiGo to process all customer refunds without levies.