Moody’s Traders Service has affirmed GMR Hyderabad Worldwide Airport Ltd’s (HIAL’s) Ba2 company household score (CFR) and Ba2 senior secured USD bond score.
The outlook on rankings stays damaging.
“The score affirmation displays our expectation of a gradual enchancment in HIAL’s income over the following two to a few, pushed by the implementation of upper tariffs beneath the ultimate tariff order from April 2022, and a gradual restoration in passenger site visitors and non-aeronautical companies beneath our base case,” stated Spencer Ng, a Moody’s Vice President and Senior Analyst.
“However, the headroom out there to HIAL to handle any additional draw back dangers have narrowed relative to our earlier expectation. That is as a result of regulator’s choice to defer round Rs 670 crore of HIAL’s regulated income to the following management interval beginning in April 2026, and the delay in passenger site visitors restoration attributable to the second wave of coronavirus instances within the June 2021 quarter,” added Ng.
HIAL has a long-term concession to function the Rajiv Gandhi Worldwide Airport (RGIA) in Hyderabad beneath a public-private partnership mannequin. The corporate is enterprise a significant airport growth that may value Rs 5,500 crore (excluding curiosity throughout development) with focused completion earlier than the top of 2022.
After factoring within the income deferral and slower site visitors restoration, HIAL’s funds from operations (FFO) will seemingly stay damaging over the following 12 to 18 months.
Moody’s stated it doesn’t count on HIAL’s FFO/debt to recuperate above the minimal tolerance degree till the 12 months ending March 31, 2025 (fiscal 2025). Given the already prolonged restoration part, any additional delay within the restoration timeframe will exert downward strain on the score.
The damaging outlook displays potential draw back dangers over the following 12 to 18 months that would stem from a slower-than-expected restoration within the airport’s site visitors and the airport’s very restricted monetary headroom to handle additional draw back dangers.
The airport has a present design capability of 12 million passengers each year. Fairness within the firm is held by GMR Airports (63 per cent), Malaysia Airports Holdings Berhad (11 per cent), the Airports Authority of India (13 per cent) and the Authorities of Telangana (13 per cent).
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