• Non-convertible debentures - Rs 10 crore
  Rating: ‘A+’ (reaffirmed)
• Short term debt programme - Rs 15 crore
  Rating: 'P1’

Crisil has reaffirmed the ‘A+’ (pronounced ‘single A plus’) rating assigned to Blue Dart Express Ltd's non-convertible debenture programme, and assigned a ‘P1’ (pronounced ‘P one’) rating to its Rs. 15 crore short term debt programme.

The ratings reflect Blue Dart's dominant position in the domestic express industry, its association with Federal Express, of the US (FedEx) for catering to the international express segment, its improved operating efficiencies following stabilisation of its aircraft operations, and the improvement in its financial performance achieved in FY 1998-99. The ratings are, however, constrained by the consolidated financial profile of Blue Dart and its subsidiary and a high degree of operating leverage associated with its operations.

Blue Dart Express operates primarily in the express segment of the courier industry that is characterised by door-to-door pick-up and delivery of documents, packages and commercial shipments. The company offers its domestic express service for 1,101 locations in India and also serves inbound and out-bound international traffic by virtue of its service tie up with FedEx. The company, through its wholly-owned subsidiary Blue Dart Aviation Ltd, operates two aircraft for moving consignments between its major hubs in the country.