Ghial
GMR Hyderabad International Airport Limited
Instrument Term Loans Fund based limits Non fund based limits Amount In Rs. crore 1338.25 (reduced from 1370.30 earlier) 75.00 125.00 Rating Action [ICRA]BBB (Stable) reaffirmed [ICRA]BBB (Stable) reaffirmed [ICRA]A3+ reaffirmed
ICRA has reaffirmed the [ICRA]BBB (pronounced as ICRA Triple B) rating assigned to the Rs. 1338.25 crore1 (reduced from Rs. 1370.30 crore earlier) term loan programme and Rs. 75 crore fund based limits of GMR Hyderabad International Airport Limited (GHIAL)†. ICRA has also reaffirmed the [ICRA]A3+ (pronounced as ICRA A Three Plus) rating assigned to Rs. 125 crore non fund based limits of GHIAL. The outlook on the long-term rating is stable. The ratings reaffirmation favourably factors in the continued improvement in GHIAL’s financial performance with healthy growth in revenues, profitability and cash accruals in 2011-12 and HY 201213 largely driven by the enhanced adhoc UDF* levy for domestic and international departing passengers since the second half of fiscal 2010-11. Other revenue streams like the non-aeronautical revenues also continue to be stable. The ratings also continue to factor in the strengths arising from GHIAL’s monopoly position within Hyderabad, diversified revenue streams with revenues from aeronautical charges, non-aeronautical revenues and the potential for real estate development, and the financial support from the Government of Andhra Pradesh in the form of interest free loans with deferred payment terms and grants, and the modest revenue sharing with the Government of India. The ratings are however constrained by the continued lack of clarity on the economic regulation for some of the major airports, including GHIAL, resulting in uncertainty on future tariff levels. Although a detailed Order and Guidelines are in place, there is a certain level of ambiguity in the wording of several provisions and as such, future tariff levels for GHIAL would depend on the AERA’s ‡ view
Instrument Term Loans Fund based limits Non fund based limits Amount In Rs. crore 1338.25 (reduced from 1370.30 earlier) 75.00 125.00 Rating Action [ICRA]BBB (Stable) reaffirmed [ICRA]BBB (Stable) reaffirmed [ICRA]A3+ reaffirmed
ICRA has reaffirmed the [ICRA]BBB (pronounced as ICRA Triple B) rating assigned to the Rs. 1338.25 crore1 (reduced from Rs. 1370.30 crore earlier) term loan programme and Rs. 75 crore fund based limits of GMR Hyderabad International Airport Limited (GHIAL)†. ICRA has also reaffirmed the [ICRA]A3+ (pronounced as ICRA A Three Plus) rating assigned to Rs. 125 crore non fund based limits of GHIAL. The outlook on the long-term rating is stable. The ratings reaffirmation favourably factors in the continued improvement in GHIAL’s financial performance with healthy growth in revenues, profitability and cash accruals in 2011-12 and HY 201213 largely driven by the enhanced adhoc UDF* levy for domestic and international departing passengers since the second half of fiscal 2010-11. Other revenue streams like the non-aeronautical revenues also continue to be stable. The ratings also continue to factor in the strengths arising from GHIAL’s monopoly position within Hyderabad, diversified revenue streams with revenues from aeronautical charges, non-aeronautical revenues and the potential for real estate development, and the financial support from the Government of Andhra Pradesh in the form of interest free loans with deferred payment terms and grants, and the modest revenue sharing with the Government of India. The ratings are however constrained by the continued lack of clarity on the economic regulation for some of the major airports, including GHIAL, resulting in uncertainty on future tariff levels. Although a detailed Order and Guidelines are in place, there is a certain level of ambiguity in the wording of several provisions and as such, future tariff levels for GHIAL would depend on the AERA’s ‡ view