Fitch rates Ircon-Soma Tollways loans BB-(ind)

Fitch Ratings said it assigned an expected rating of BB-(ind) to Ircon-Soma Tollways Pvt. Ltd.'s long-term project bank loans aggregating Rs.4.5 billion.

The outlook is stable.

The ratings consider strengths, including the completion of a major section of the roadway, equity support from the national highway authority and the experience of the project sponsors, the agency said.

The ratings also reflect the moderate-to-high probability of one or more technical defaults of financial covenants under the current loan agreement due to projected cash flow weakness in the early years of operation, Fitch said.

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