S&P lifts Delhi airport

S&P said it raised its ratings on Delhi International Airport Ltd. and its senior secured notes to B from B-.

“A rebound in passenger traffic will support an improvement in DIAL's interest servicing ratio. We believe passenger traffic volumes in India will recover strongly as omicron cases stabilize, and as restrictions ease for both travel and capacity on domestic airlines. DIAL's domestic passenger volume in March 2022 surpassed 4 million, rebounding strongly to 105% of that in the same period in 2019 and about 95% of that in 2020 (adjusted for the impact of the lockdown),” the agency said in a press release.

The recovery will support DIAL's interest-servicing ability, with FFO cash interest coverage recovering to 0.9x-1.1x over fiscal years 2023 and 2024, S&P estimates.

The outlook is stable.

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