Fitch affirms IVRCL Infrastructure

Fitch Ratings said it affirmed IVRCL Infrastructure Projects Ltd.'s short-term rating at F1+(ind) and the short-term rating for the company's Rs. 9.4 billion non-fund-based limits and its Rs. 4.5 billion commercial paper program at F1+(ind).

The agency also said it downgraded its national long-term rating to A+(ind) from AA-(ind), its Rs. 11.75 billion fund-based limits, Rs. 36 billion long-term non-fund based limits, Rs. 53 million long-term loans and Rs. 3.2 billion non-convertible debenture program to A+(ind) from AA-.

The agency also said it assigned to the company's Rs. 2.25 billion fund-based limits and Rs. 81 million long-term loan a long-term rating of A+(ind) and its Rs.1.66 billion short-term non-fund based limits and Rs. 1.5 billion additional commercial paper program a short-term rating of F1+(ind). The entire Rs. 6 billion commercial paper program will be carved out of existing working capital limits.

The outlook has been revised to stable from negative.

The action reflects concerns about the potential increase in the company's financial leverage, which is further exacerbated by the delays of the current Build Own Operate Transfer (BOOT) projects, Fitch said.

The ratings also consider its plan to undertake six additional BOOT projects at a total cost of Rs. 77.8 billion, with equity contribution requirement of Rs. 10.1 billion over the next three years, the agency said.

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