S&P cuts Delhi International

S&P said it downgraded Delhi International Airport Ltd. and the rating on its senior secured notes to B+ from BB-.

“We lowered the rating on DIAL because weak passenger traffic due to Covid-19 and the company’s high committed spending over the next three years will result in significantly higher leverage than we anticipated,” S&P said in a press release.

Citing the spike in coronavirus cases in India, S&P noted, “We estimate international traffic in India will decline 75% and domestic traffic 55% in fiscal 2021 (year ending March 31, 2021). We had earlier assumed a 25%-30% drop in international traffic and a 20%-25% drop for domestic traffic for the year for Indian airports.”

The ratings remain on CreditWatch with negative implications, S&P said.

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