India Ratings (Ind-Ra) has placed the proposed bank facilities of GMR Hyderabad International Airport Ltd (GHIAL), Delhi International Airport Ltd (DIAL) and Bengaluru International Airport Ltd (BIAL) on Rating Watch Negative (RWN).

All the three major international airports have started phase II expansion.

The RWN reflects the uncertainty regarding the impact on passenger traffic due to visa curbs, the complete embargo on international flights from March 22, and the reduction in domestic travel due to the Covid-19 outbreak.

While stating that the outlook is stable, the rating agency said it is provisional and shall be confirmed upon the execution of loan documents. Ind-Ra will monitor the effect of the same on GHIAL’s cash flows and liquidity.

GHIAL had an overall liquidity of ₹2,176 crore as of February 2020, and inter-corporate deposits worth ₹200 crore from GMR Infrastructure Ltd. In FY21, the company would have a monthly debt obligation of around ₹20 crore, an operating cost of around ₹35 crore and capex requirement of ₹175 crore.

Of the total planned capex of ₹6,500 crore, GHIAL had already incurred a capex of ₹2,300 crore as of February 2020. The company has a sanctioned facility from YES Bank Ltd for ₹2,100 crore. The documentation for the same is yet to be finalised. Ind-Ra will monitor the extent of liquidity, the disbursement from YES Bank, and cash generation until the Covid-19 impact is neutralised.

DIAL has already incurred a capex of ₹2,700 crore as of February-end, against the overall capex of ₹10,500 crore by FY22. The company has adequate liquidity to meet the capex obligation.

In the case of BIAL, it has thus far invested about ₹4,384 crore as of February 2020 as against total capex of about ₹13,500 crore, according to the rating agency.

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