By Ratnam Raju Nakka

India Ratings and Research (Ind-Ra) has downgraded Kashipur Sitarganj Highways Pvt Ltd’s (KSHPL) bank loans to Long Term ‘IND D’ from ‘IND BB+’ while migrating the ratings to the non-cooperating category. The issuer did not participate in the surveillance exercise, despite continuous requests and follow-ups by the agency. Thus, the rating is based on the best available information and feedback from a banker. Investors and other users are advised to take appropriate caution while using these ratings. The rating will now appear as ‘IND D(ISSUER NOT COOPERATING)’ on the agency’s website. The rating action is as follows:

Instrument Type

Date of Issuance

Coupon Rate

Maturity Date

Size of Issue (million)

Rating

Rating Action

Senior long-term rupee loans (Long term)

-

-

-

INR4,220

IND D(ISSUER NOT COOPERATING)

Downgraded and Migrated to Non-Cooperating category

Note: ISSUER NOT COOPERATING: Issuer did not cooperate; Based on best available information

KEY RATING DRIVERS

The downgrade reflects KSHPL’s defaults on debt obligations during the trailing 12 months.


RATING SENSITIVITIES

Positive: Timely debt servicing for at least three consecutive months could result in a rating upgrade.


COMPANY PROFILE

KSHPL is an SPV incorporated to implement a 77.2km lane expansion project (two-to-four laning) between Kashipur and Sitarganj in Uttarakhand on NH-74, under a 21-year concession from National Highways Authority of India (‘IND AAA’/Stable). The estimated project cost of INR7,574.1 million is being funded by a term loan of INR4,220 million, sponsor’s contribution of INR1,124.1 million and INR2,230 million in a grant by the concessioner. Lender Independent Engineer has indicated that company has recently achieved the commercial operations date.


RATING HISTORY

Instrument Type

Current Rating

Historical Rating/Outlook

Rating Type

Rated Limits (million)

Rating

24 October 2016

21 September 2015

17 September 2014

Senior long-term rupee loans

Long-term

INR4,220

IND D(ISSUER NOT COOPERATING)

IND BB+/Stable

IND BBB-/Stable

IND BBB-/Stable


COMPLEXITY LEVEL OF INSTRUMENTS

For details on the complexity levels of the instruments, please visit https://www.indiaratings.co.in/complexity-indicators.

SOLICITATION DISCLOSURES

Additional information is available at www.indiaratings.co.in. The ratings above were solicited by, or on behalf of, the issuer, and therefore, India Ratings has been compensated for the provision of the ratings. 

Ratings are not a recommendation or suggestion, directly or indirectly, to you or any other person, to buy, sell, make or hold any investment, loan or security or to undertake any investment strategy with respect to any investment, loan or security or any issuer.

ABOUT INDIA RATINGS AND RESEARCH

India Ratings and Research (Ind-Ra) is India's most respected credit rating agency committed to providing India's credit markets accurate, timely and prospective credit opinions. Built on a foundation of independent thinking, rigorous analytics, and an open and balanced approach towards credit research, Ind-Ra has grown rapidly during the past decade, gaining significant market presence in India's fixed income market. 

Ind-Ra currently maintains coverage of corporate issuers, financial institutions (including banks and insurance companies), finance and leasing companies, managed funds, urban local bodies, structured finance and project finance companies. 

Headquartered in Mumbai, Ind-Ra has six branch offices located in Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad and Kolkata. Ind-Ra is recognised by the Securities and Exchange Board of India, the Reserve Bank of India and National Housing Bank. 

India Ratings is a 100% owned subsidiary of the Fitch Group.

For more information, visit www.indiaratings.co.in.

DISCLAIMER

ALL CREDIT RATINGS ASSIGNED BY INDIA RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTPS://WWW.INDIARATINGS.CO.IN/RATING-DEFINITIONS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE WWW.INDIARATINGS.CO.IN. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. INDIA RATINGS’ CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE.

Analyst Names

  • Primary Analyst

    Ratnam Raju Nakka

    Associate Director
    India Ratings and Research Pvt Ltd Wockhardt Towers, 4th floor, West Wing Plot C-2, G Block. Bandra Kurla Complex Bandra (East), Mumbai 400051
    +91 22 40001742

    Media Relation

    Mihir Mukherjee

    Manager Corporate Communications and Investor Relations
    +91 22 40356121