CRISIL reaffirms AAA on Airports Authority's debt plan

Mumbai: CRISIL has reaffirmed AAA/Stable rating on Airports Authority of India’s Rs 3,000 crore long-term borrowing programme.
The rating continues to reflect the authority’s robust financial risk profile and dominant market position. The rating also factors in AAI’s strategic importance to the government and the expected strong growth in the authority’s revenues, the rating agency said.
These rating strengths are, however, partially offset by AAI’s revenue concentration risk arising from a limited number of profitable airports.
Over the past two years, AAI has registered a robust growth in operating income and cash accruals, driven by strong year-on-year growth in passenger traffic, at 24 per cent and 31 per cent in 2005-06 (Apr-Mar) and 2006-07 respectively. The strong passenger traffic growth was aided by healthy economic growth, and increase in affordability of air travel with the entry of low-cost airlines.
23/10/07 Economic Times

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Categories: Airports Oct 2007