Icra cuts Gurgaon Metro rail's rating for not making debt payment on time

The company's inability to generate sufficient revenue due to continued weak ridership

Rating agency Icra has downgraded bank debt for Rapid Metrorail Gurgaon South Ltd (RMGSL) from grade ‘C’ to grade ‘D’, for not making debt payment on time.

RMGSL, a Special Purpose Vehicle (SPV), was set up to implement a metro rail link from the Sikandarpur station in Gurugram (Gurgaon) of Delhi Metro Rail's network to Sector 56. This was a public-private partnership, with Haryana Urban Development Authority (HUDA). The SPV’s sponsors are IL&FS Rail with 65 per cent stake and IL&FS Transportation Networks with the 35 per cent.   RMGSL has not paid the interest for last month on its Rs 15-billion