S&P Global downgrades DIAL’s long-term rating to B- from B+
Rating agency S&P Global on Wednesday downgraded Delhi International Airport Ltd’s (DIAL) long-term issue rating on its senior secured notes to ‘B-’ from ‘B+’, citing heightened liquidity risks faced by the airport operator.
“We lowered the ratings on DIAL due to uncertainty in the company’s receipt of CPD (commercial property development) income and deposits from Bharti Realty Ltd. Our base case no longer considers these cash flows because CPD income has now been delayed for more than one year and we have no visibility on the timeline for resolution,” it said.
“We believe DIAL could face increased liquidity risks given its high dependence on CPD cash flows to support interest obligations and capital expenditure (capex) amid continuing regulatory uncertainty,” it said.
