Fitch rates IVRCL Indore Gujarat loans BBB(ind)

Fitch Ratings said it assigned a national long-term rating of BBB(ind) to IVRCL Indore Gujarat Tollways Ltd.'s Rs. 11.43 billion senior project bank loans, along with a rating of BBB(ind) to its Rs. 587.5 million performance security.

The outlook is stable.

The performance security will be provided to National Highways Authority of India through a bank guarantee within 180 days of signing the concession agreement, Fitch said.

The ratings are underpinned by the project's strong revenue potential as portrayed in the traffic consultant's study carried out in December 2009, Fitch said.

Constraints include the potential risk of delayed completion as construction has not yet commenced and the possibility of delays in land being made available by the National Highways Authority, a feature common to many infrastructure projects, the agency said.

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