CARE reaffirms AAA rating to IRB InvIT Fund long-term bank facilities

The reaffirmation of the rating reflects the high credit quality and established operational track record of the underlying toll road assets.

Oct 05, 2021 09:10 IST India Infoline News Service

IRB Infrastructure Private Limited informed the exchanges Monday that CARE Ratings Limited has reaffirmed CARE AAA rating to IRB InvIT Fund (the Trust) for long-term bank facilities of Rs1,462.04cr with a Stable outlook. IRB Infra is the Investment Manager to IRB InvIT Fund.

“The reaffirmation of the rating assigned to the long-term bank facilities of IRB InvIT Fund reflects the high credit quality and established operational track record of the underlying toll road assets. The rating pertains to the debt at the fund level and does not cover the ability of the fund to pay envisaged returns to the unitholders of the fund or debt servicing ability of underlying special purpose vehicles (SPVs) of the trust,” company shared CARE rating rationale.

It further said, the rating continues to take into account support from the pooling of cash flows from seven operational road SPVs in InvIT fund located at diversified geographical locations collecting toll with an average operational period of around 10 years.

The trust has 100% equity stake in all the seven project SPVs with no external debt (debt is infused by InvIT). In addition, the trust continues to maintain DSRA at stipulated levels of Rs50cr in the form of mutual funds.

At around 9.28 am, IRB InvIT Fund was trading at Rs58.30 per piece up by Rs0.24 or 0.41% from its previous closing of Rs58.06 per piece on the BSE.

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