Fitch rates Mhaiskar Infrastructure's bank loans A+(ind)

Fitch Ratings said it assigned A+(ind) ratings to Mhaiskar Infrastructure Private Ltd.'s long-term project bank loans aggregating Rs.10,775.5 million, along with an A+(ind) rating to the non-fund based exposure aggregating Rs.300 million serving as performance security, executed in the form of a bank guarantee from Canara Bank.

The outlook is stable.

Mhaiskar Infrastructure is a special purpose vehicle sponsored by the IRB Group. MIPL has a 15-year concession from the state government-owned Maharashtra State Road Development Corp. Ltd. to expand a national highway and make changes to another expressway.

The rating reflects the company's operating track record of toll collections, the strong economic growth drivers in the region that is served by the roads, strong contractual arrangements and a guarantee from the sponsor company that is available for the bank loans, Fitch said.

However, high leverage levels constrain the ratings, the agency said.

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