Wednesday, November 07, 2018

Fitch downgrades Hyderabad airport ratings

Hyderabad: Fitch ratings has downgraded its outlook on GMR’s Hyderabad international airport’s ratings and its USD 350-million bond issue rating to negative from stable.

The negative outlook reflects the significantly higher rating case forecast net debt to operating profit, averaging 4.7x versus 3.3x in our 2017 forecast. We believe that the higher capex driving this higher leverage forecast is justified by strong traffic growth and will be more efficient than the previous more conservative phased capex plan.

Nonetheless, the consequent increase in net debt to operating profit and execution risk drive the negative outlook,” Fitch said in a statement on Tuesday.

The airport reported a passenger traffic of 18.3 million, of which about 94 per cent were origin and destination passengers.
06/11/18 PTI/Business Line