S&P shifts GMR outlook to positive

S&P said it revised its outlook on GMR Hyderabad International Airport Ltd. to positive from stable and affirmed the BB- ratings on the issuer and its senior unsecured notes.

“Stronger profitability and lower spending needs after the completion of the current expansion program will bolster Ghial's ratio of operating cash flow (OCF) to debt,” the agency said in a press release.

S&P said it forecasts GHIAL's OCF-to-debt ratio to improve to 7.5%-10% over the fiscal years 2025 (year ending March 31, 2025) and 2026, from its estimate of 4.5% in fiscal 2024. “A strong recovery in passenger traffic will support this, and we expect total traffic in fiscal 2024 could surpass pre-pandemic levels at 115%.”

The agency also estimates the company's adjusted EBITDA margin to rebound to 44%-48% over fiscal years 2024 and 2025, from 40% in fiscal 2023.

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