Fitch Cuts Delhi International Airport s Rating to BB with Negative Outlook on Sharp Drop in Traffic Volumes
Moneylife Digital Team
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Fitch Ratings has downgraded Delhi International Airport Ltd (DIAL) s long-term issuer default rating (IDR) and the ratings on its outstanding senior unsecured notes to BB from BB+ on sharp drop in traffic volumes at the airport. The outlook is negative.
Fitch says, The downgrade reflects the sharp drop in DIAL s volume in 2020 due to significant travel restrictions to curb the spread of the coronavirus. We expect the recovery in traffic volumes to be prolonged. Weaker earnings and moderately flexible capex payments result in DIAL s projected average Fitch-adjusted net debt/ earnings before interest, taxes, depreciation, amortization and restructuring or rent costs (EBITDAR) increasing to 10.0 times.