India Toll Roads (ITR) is held by a trust.
“Moody’s Investors Service has assigned a definitive Ba2 rating to the 3.5-year USD300 million senior secured notes issued by ITR,” Moody’s said in a statement.
The outlook for the rating is stable, it said.
The proceeds from the USD issuance are used principally to fund ITR’s purchase of onshore senior secured non-convertible debentures (NCDs)issued by
, the statement said.
IRB, in turn, used the proceeds mainly to refinance existing debt, to fund capital expenditure and for general corporate purposes, it added.
The Ba2 rating for the USD bonds factors in subordination risks for USD bondholders primarily because debt service is reliant on holding company cash flows and security provided for the rupee NCD is in relation to a key asset which already has project finance debt.