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Reliance Infrastructure’s (Rinfra) Rs 2,500-crore Infrastructure Investment Trust (InvIT) fund has been assigned AAA (triple A) raing by CARE and ICRA, forecasting a stable outlook for the issue.
Billionaire Anil Ambani group’s flagship company RInfra plans to raise ₹2,500 crore through the InvIT fund with a probable launch date in June.
CARE has assigned an issuer rating of CARE AAA(Is); Stable. The rating derives strength from the substantial repayment of combined debt from the proceeds of the initial public offer (IPO), while it takes into account favourably, diversified portfolio of the company’s toll road assets.
CARE rating takes into account RInfra’s diversified portfolio of toll road assets with a reasonable operational track record.
The proposed InvIT will own 100 per cent of six project special purpose vehicles (SPVs) and 74 per cent of one of the SPVs, GF Toll Road Pvt Ltd. Each of these projects is structured into separate SPVs which own, operate and maintain a toll-road project.
All the project SPVs are the National Highways Authority of India (NHAI) toll road projects except GF.
ICRA, a Moody’s investors service company, has assigned a long-term rating of IrAAA (I R Triple A) to RInfra InvIT. The rating carries a stable outlook and reflects the strength of the seven operational road SPVs proposed to be included in the InvIT.
The rating is supported by InvIT's strong debt coverage indicators providing ample cushion for external debt servicing in the event of wide fluctuations in toll collections. Further, low level of leveraging and high tail period of around eight years provides financial flexibility.
The projects included in InViT Fund are DS Toll Road, GF Toll Road, JR Toll Road, NK Toll Road, SU Toll Road, TD Toll Road and TK Roll Road. Of these, six SPVs - DS, JR, NK, SU, TD and TK - are national highway toll roads. GF is a Haryana state toll road.
Four projects (DS, TK, SU and GF) accounted for 71 per cent of the total toll collection of all SPVs in FY17, out of which, two projects namely TD and GF have posted a YOY growth of 6 per cent and 5 per cent, respectively, in toll revenues.
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