Fitch ups Mumbai Airport

Fitch Ratings said it upgraded Mumbai International Airport Ltd.'s bank loans facilities to BBB+(ind)from BBB(ind), including its long-term loans of Rs. 42.31 billion, fund-based limits of Rs. 420 million, non-fund based limits of Rs. 3.1 billion, enhanced from Rs. 2.6 billion, and performance guarantee of Rs. 7 billion, enhanced from Rs. 6.2 billion.

The outlook is positive.

Fitch also said it withdrew the expected BBB(ind) rating assigned to its proposed Rs. 21.42 billion additional term loan as management does not expect to need fresh borrowings to fund the Rs. 98.02 billion modernization program.

The upgrade is underpinned by the mitigation of completion risk, strong traffic performance, healthy internal accruals plus the levy of an airport development fee, which is expected to result in lower-than-anticipated debt levels, Fitch said.

The agency said strong demand led by the economic recovery will continue to drive the traffic growth over the short- to medium-term.

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