Fitch Ratings on Thursday affirmed GMR Hyderabad International Airport Ltd s (GHIAL s) long-term issuer default rating and rating on outstanding senior secured notes at BB-plus. But the outlook is negative as it reflects the risk of an increase in coronavirus infection rates, leading to re-imposition of travel restrictions. Besides, the company has tight financial headroom with Fitch forecasting leverage to reach 7.7x by FYE24, just under its downgrade trigger of 8x. However, the rating affirmation reflects the pick-up in India s domestic air traffic, GHIAL s ability to fund its near-term capex requirements and sharp deleveraging estimates in the rating case. GHIAL s FY20 passenger traffic was 21.6 million, most of which were origin and destination passengers. Hyderabad Airport has had CAGR of 12 per cent in passengers from its first year of commercial operations in 2009 until FY20.
Singapore, January 21 (ANI): Fitch Ratings on Thursday affirmed GMR Hyderabad International Airport Ltd's (GHIAL's) long-term issuer default rating and rating on outstanding senior secured notes at BB-plus.
Why ratings agencies are downgrading Delhi Airport
Fitch has downgraded Delhi Airport because of the sharp drop in footfall on the back of pandemic-induced travel restrictions, weaker earnings, and net debt-EBITDAR ratio increasing to 10
Manu Kaushik | January 19, 2021 | Updated 00:32 IST
First it was S&P Global Ratings in November, and now Fitch Ratings, the Delhi International Airport Limited (DIAL) has received two rating downgrades in less than three months. In the case of Fitch Ratings, the downgrade happened because of the sharp drop in footfall at the Delhi Airport last year due to stringent travel restrictions imposed as a result of pandemic, weaker earnings, and net debt/EBITDAR (earnings before interest, taxes, depreciation, amortisation, and restructuring or rent costs) ratio increasing to 10.