Lenders face higher risks from MIAL exposure, Crisil downgrades ratings

It was earlier expected that 20-25 acres of real estate monetisation would be near closure which will help shore up the liquidity levels within the first half of fiscal 2020

Lenders to Mumbai International Airports (MIAL) face higher risks to their exposure as the GVK group-backed entity is facing liquidity pressure owing to delay in real estate monetisation (of 20-25 acres).
 
The repayment of loans of over Rs 250 crore against real estate deposits is due in the next few months. Rating agency CRISIL has downgraded MIAL’s bank facilities and non-convertible debentures from ‘AA’ to ‘A+’. The ratings have subsequently been placed on ‘Rating Watch with Negative Implications’. The downgrade reflects further delays in monetisation of real estate from previous expectations, which will result in lower liquidity than expected