Mumbai: S&P Global Ratings has affirmed the ratings on GMR Hyderabad International Airport (GHIAL) as “BB plus” and outlook as stable, citing stable cash flows.
“We expects the company's healthy cash reserves and good operating performance to provide sufficient buffer amid regulatory uncertainties over the next two to three years,” the rating agency said.
“The continuing delay in the implementation of the lower tariff will allow the company to increase its cash reserves, helping to de-risk its upcoming spending plans,” it said.
The regulatory mechanism still results in reasonably predictable cash flows for GHIAL over the five-year regulatory period, despite interim tariff volatility due to delayed regulatory resets. The tariff mechanism will allow for the eventual recovery of costs, capital spending, and returns, it said....