Rating upgrade unlikely over 18-24 months for Hyderabad Airport: Moody's

Affirms ratings; retains negative outlook

Rating agency Moody's has affirmed GMR Hyderabad International Airport Ltd's (HIAL) Ba2 corporate family rating (CFR) and bond rating on expectations of gradual improvement in HIAL's revenue over the next 2-3 years.

The outlook on the ratings remains negative. An upgrade of the ratings is unlikely over the next 12-18 months, given the negative outlook and HIAL's high financial leverage.

A gradual improvement in revenues is expected on implementation of higher tariffs under the final tariff order from April 2022, and a gradual recovery in passenger traffic and non-aeronautical businesses on base case, agency said.

Spencer Ng, Vice President and Senior Analyst, Moody's