Moody's, CRISIL see NHAI going strong

National Highways Authority of India (NHAI) is likely to have a robust future as indicated by recent ratings of various agencies, the Government today said in a statement.

Moody's Investors Service has upgraded the issuer ratings of National Highways Authority of India to Baa2 from Baa3 and revised outlook to stable from positive.

"The upgrade in ratings for NTPC, NHPC, NHAI and GAIL follows the upgrade of the Indian sovereign rating and reflects the strategic importance of these entities to the country, as well as their close operational and financial links with the government," Moody's said in a statement.

On October 9, Moody's had assigned a first time Baa3 rating to NHAI. The upgrade to Baa2 has come for NHAI in a very short time.

However, CRISIL on November 16, indicated that reforms by NHAI have resulted in a steep decline in the percentage of high risk highways projects from 53 percent two years ago to 21 percent now.

The CRISIL report also acknowledged that NHAI reforms have resulted in doubling of highways construction rate from 12 km per day in 2015 to 23 km per day in 2017.

"The improved ground situation in both debt and equity has resulted in investors showing more interest in the road sector," CRISIL said.