Hyderabad: Fitch Ratings has affirmed the Long-Term Issuer Default Rating (IDR) and bond issue ratings of GMR-led Delhi Airport and Hyderabad Airports at ''BB+'' with a Negative Outlook.
The Negative Outlook reflects the ongoing uncertainty relating to the timing and duration of the traffic shock and recovery caused by the coronavirus pandemic, the rating agency said on Tuesday.
GMR Hyderabad International Airport Limited (GHIAL) and Delhi International Airport Limiteds (DIAL) operations are limited to cargo and evacuation flights under these circumstances.
A prolonged pandemic and nationwide lockdown, and further deterioration in the economy, will reduce air passenger traffic and lead to lower aeronautical and non- aeronautical revenue than Fitch expects, it said.
"We currently assume a recovery from the traffic and revenue shock in the financial year ending March 2022 (FY22) as DIAL operates a strategic airport serving the country''s national capital region and benefits from a high share of domestic traffic, with greater resilience.
However, we will revise our rating case accordingly if the severity and duration of the outbreak are worse than our current expectations," Fitch said in case of Delhi Airport.
12/05/20 PTI/Outlook
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The Negative Outlook reflects the ongoing uncertainty relating to the timing and duration of the traffic shock and recovery caused by the coronavirus pandemic, the rating agency said on Tuesday.
GMR Hyderabad International Airport Limited (GHIAL) and Delhi International Airport Limiteds (DIAL) operations are limited to cargo and evacuation flights under these circumstances.
A prolonged pandemic and nationwide lockdown, and further deterioration in the economy, will reduce air passenger traffic and lead to lower aeronautical and non- aeronautical revenue than Fitch expects, it said.
"We currently assume a recovery from the traffic and revenue shock in the financial year ending March 2022 (FY22) as DIAL operates a strategic airport serving the country''s national capital region and benefits from a high share of domestic traffic, with greater resilience.
However, we will revise our rating case accordingly if the severity and duration of the outbreak are worse than our current expectations," Fitch said in case of Delhi Airport.
12/05/20 PTI/Outlook
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