Fitch Ratings affirms GMR Hyderabad International Airport at BB-plus

Fitch Ratings on Thursday affirmed GMR Hyderabad International Airport Ltd’s (GHIAL’s) long-term issuer default rating and rating on outstanding senior secured notes at BB-plus.

But the outlook is negative as it reflects the risk of an increase in coronavirus infection rates, leading to re-imposition of travel restrictions.

Besides, the company has tight financial headroom with Fitch forecasting leverage to reach 7.7x by FYE24, just under its downgrade trigger of 8x.

However, the rating affirmation reflects the pick-up in India’s domestic air traffic, GHIAL’s ability to fund its near-term capex requirements and sharp deleveraging estimates in the rating case.