S&P lifts Delhi International from watch

S&P said it affirmed Delhi International Airport Ltd.’s B- ratings and removed them from CreditWatch with negative implications. The agency placed them on watch on March 20.

“DIAL now has adequate liquidity following the refinancing of its February 2022 senior secured bonds with a recent notes issuance large enough to fund capital expenditure and deferral of Airport Authority of India's (AAI) concession fees,” the agency said in a press release.

S&P also noted DIAL received regulatory approval for commercial property development and extension of the CPD contract with Bharti Realty Ltd. till end-June 2021.

S&P assigned a positive outlook. “The positive outlook on DIAL reflects the possibility we may raise the rating over the next 12 months if the company restores its FFO cash interest coverage to about 1x over fiscals 2023 and 2024. This could happen if the company receives the CPD income and domestic passenger traffic volumes stay close to our expectation of 70% of pre-pandemic levels in fiscal 2022,” the agency said.

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