S&P downgrades DIAL’s rating to ‘B-‘ over heightened liquidity risk
Rating agency Standard and Poor’s (S&P) on Thursday downgraded the long term issuer rating for Delhi International Airport Ltd (DIAL) from “B+” to “B-” due to heightened liquidity risk.
The rating agency said it no longer considers the receipt of commercial property development (CPD) cash flows due to material delays. The company is considering a few options to preserve cash in the absence of CPD money. The options include lease financing.
S&P has kept the ratings on CreditWatch where they were first placed with negative implications on March 20, 2020. The CreditWatch reflects the view that DIAL’s capital structure could become increasingly unstable without CPD income. This would heighten refinancing risks for the company’s bonds due in February 2022, it added.
