Tuesday, October 10, 2017

Moody's assigns Ba1 rating to GMR's Hyderabad Airport

Hyderabad: Moody's Investors Service has assigned a first-time corporate family rating of Ba1 to GMR Hyderabad International Airport Limited (GHIAL) and the outlook for the rating is stable.
GHIAL has a long-term concession to operate Hyderabad airport, which is one of the leading airports in India.
"The Ba1 corporate family rating primarily reflects GHIAL's strong market position and its strategic location in the city of Hyderabad, which is India's fourth most populous city and a major economic centre," Moody's vice president and senior analyst Abhishek Tyagi said.
These factors position GHIAL well to benefit from continued growth in travel over the next two to three years.
GHIAL's credit profile is also underpinned by its low business risk due to low concession revenue share payment to the government, he further said.
However, the rating is challenged by the limited track record of India's regulatory framework and GHIAL's significant capital expenditure to expand its capacity, which will elevate financial leverage and raise execution challenges, the rating agency said.
10/10/17 PTI/Economic Times
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