Fitch rates GVNS Tollways loans BB+(ind)

Fitch Ratings said it assigned GVNS Tollways' Rs. 105 million senior project bank loans a national long-term rating of BB+(ind).

The outlook is stable.

The rating is constrained by several weak creditor-protection features in the loan documents, including the absence of reserve accounts such as the debt service reserve account and major maintenance reserve account, the agency said.

Ratings are further constrained by the lack of stipulation of minimum coverage ratios and debt-gearing levels along with the absence of a lock-up covenant, although an eight-year tail offers considerable flexibility to restructure, if required, the agency noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.