Fitch gives India Toll notes BB

Fitch Ratings said it assigned an expected BB rating to India Toll Road’s proposed senior secured notes. The agency also gave a BB rating to IRB Infrastructure Developers Ltd. with a stable outlook.

India Toll Roads is an orphan special financing vehicle with no linkage to IRB. Proceeds will be used to subscribe to IRB’s non-convertible debentures. Noteholders will have senior ranking, in line with other secured creditors at the holding company, leading Fitch to rate the proposed notes at the same level as IRB’s IDR, the agency said.

IRB will employ most of the proceeds to repay some term loans and an overdraft facility, extend sub-debt to certain SPVs and for general corporate purposes, including issuance expenses, Fitch explained.

“IRB’s ratings reflect our expectation of robust traffic performance across its diverse and strategically located portfolio of toll roads, supported by a concession framework that provides visibility on upcoming tariff increases,” the agency said in a press release.

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