Icra has revised the rating outstanding on the R1,014.93-crore long-term loan programme of L&T Halol Shamlaji Tollway...
Icra has revised the rating outstanding on the Rs 1,014.93-crore long-term loan programme of L&T Halol Shamlaji Tollway (L&T-HSTL) from [Icra]BB+ with a stable outlook to [Icra]D, according to a release.
It said the rating revision takes note of the recent delay in servicing part of the debt for August 2015 following low toll collections, resulting in cash shortfall.
“Since the beginning of tolling operations, the traffic volume witnessed in this stretch (in three of the four Toll Plazas) has been significantly lower than the initial estimates, due to presence of a significant alternate route, resulting in lower than anticipated cash accruals,” Icra said.
L&T-HSTL is a special purpose vehicle incorporated in September 2008 and is a 100% subsidiary of L&T Infrastructure Development Projects (L&T IDPL), according to Icra. The SPV has carried out the four-laning of 173.06 km of SH 5 from Halol to Shamlaji in Gujarat, it said.
Icra also revised the long-term rating to the Rs 475-crore term loans of L&T Chennai Tada Tollway (CTTL) from [Icra]BBB- with a stable outlook to [Icra]D, according to a release. The rating revision comes in the wake of the recent delays in debt servicing following the dispute with NHAI, with regards to termination of the concession, Icra said, adding the company has served termination notice to NHAI due to land acquisition related issues.