S&P rates DIAL notes BB

S&P said it affirmed the BB long-term issuer credit rating on Delhi International Airport Ltd. (DIAL).

The agency also affirmed the BB long-term issue rating on the company's senior secured notes.

S&P also said it assigned a BB long-term issue rating to its proposed $350 million notes.

The agency said it believes base airport charges, annual lease rentals and long-term refundable security deposit from recent commercial property monetization will allow Delhi International Airport to maintain its financial strength over the next 12- to 18-months.

The airport's large capital expenditure program of more than INR100 billion will put pressure on financials, but there may be upside to existing cash flow should control-period 3 tariff be higher than base airport charges or rental income increase with more commercial property development, S&P said.

The stable outlook reflects a view of the company's high visibility on cash flow and a large cash balance, the agency said.

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