Hong Kong/London: Fitch Ratings has affirmed GMR Hyderabad International Airport Limited's (GHIAL) Long-Term Issuer Default Rating (IDR) and its bond issue ratings at 'BB+' with a Negative Outlook.
The coronavirus pandemic and related government containment measures worldwide create an uncertain global environment for air travel in the near term. Fitch's ratings are forward-looking , and Fitch will monitor pandemic-related developments in the sector for severity and duration, and incorporate revised base- and rating-case qualitative and quantitative inputs based on our expectations for performance and assessment of key risks.Our Negative Outlook reflects the pandemic-related impact on the airport's passenger traffic and revenue, execution risk of the debt-funded airport expansion plan and price uncertainty for future five-year control periods.
GHIAL's most recent performance data may not have indicated outbreak-related impacts, but we expect travel restrictions to affect severely GHIAL's passenger traffic and revenue. The Indian government has imposed a 21-day nationwide lockdown until 14 April 2020. A prolonged outbreak and further deterioration in the economy will hurt business and leisure travel and passengers' spending in the airport, leading to reduced aeronautical and non-aeronautical revenue. Still, GHIAL's traffic is 80% domestic passengers, who we see as more resilient than international traffic. However, any nationwide lockdown as currently imposed would also affect domestic traffic.
01/04/20 Fitch Ratings
To Read the News in full at Source, Click the Headline
The coronavirus pandemic and related government containment measures worldwide create an uncertain global environment for air travel in the near term. Fitch's ratings are forward-looking , and Fitch will monitor pandemic-related developments in the sector for severity and duration, and incorporate revised base- and rating-case qualitative and quantitative inputs based on our expectations for performance and assessment of key risks.Our Negative Outlook reflects the pandemic-related impact on the airport's passenger traffic and revenue, execution risk of the debt-funded airport expansion plan and price uncertainty for future five-year control periods.
GHIAL's most recent performance data may not have indicated outbreak-related impacts, but we expect travel restrictions to affect severely GHIAL's passenger traffic and revenue. The Indian government has imposed a 21-day nationwide lockdown until 14 April 2020. A prolonged outbreak and further deterioration in the economy will hurt business and leisure travel and passengers' spending in the airport, leading to reduced aeronautical and non-aeronautical revenue. Still, GHIAL's traffic is 80% domestic passengers, who we see as more resilient than international traffic. However, any nationwide lockdown as currently imposed would also affect domestic traffic.
01/04/20 Fitch Ratings
0 comments:
Post a Comment