CARE Ratings expects a total increase of about 10–11% in toll collection in FY 2012 based on the low base of factoring in the current position of Covid in FY 2012. This is despite the expectation of a 20% drop in toll collection in the first two. Months of fiscal year 22 as compared to the previous year.
A recent study by CARE Ratings reported that CARE Ratings’ investment-grade toll road portfolio is likely to provide stable credit performance despite Covid. Despite potential failures from traffic disruption, 4 of the 58 investment grade operational projects evaluated by CARE are likely to be credit-stable. This is due to the presence of a flexible toll collection, adequate debt coverage indicators, and liquidity buffers.
For these projects, CARE’s rating is expected to have a debt service coverage ratio (DSCR) of at least 1.10 times for the fiscal year 2012, a liquidity reserve equal to one-quarter of the amount. debt service. The remaining nine projects are likely to be supported with liquidity assistance from sponsors as needed.
News Source: ConstructionWorld
