Moody’s: Delhi International Airport bonds Ba2

Moody's Investors Service said it assigned a Ba2 rating to the senior secured Masala bonds and senior secured dollar-denominated bonds of Delhi International Airport Pvt. Ltd. (DIAL).

The Ba2 corporate family rating and the Ba2 rating of its existing $288.75 billion senior secured bond remain unchanged.

The outlook is stable.

DIAL will apply the proceeds from the bonds to fully refinance an existing local currency bank term loan facility of around Rs. 30 billion and a dollar-denominated external commercial borrowing facility of around $84 million.

The bonds will represent a senior secured obligation and will rank equally with all of DIAL's existing and future senior debt and senior to any subordinated debt, the agency said.

This issuance of rupee-denominated Masala bonds will assist DIAL to raise funds without incurring currency risk and diversify its debt funding base beyond local bond markets, bank loans and dollar-denominated bonds.

Moody’s said the Ba2 ratings reflect DIAL's strong market position as the international gateway to India's landlocked capital, a region of around 17 million people, and has resulted in DIAL's robust passenger traffic growth.

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