Infra projects to face challenges in India: Fitch
Highlighting the challenges faced by infrastructure projects in India, global rating agency Fitch has said that many of these projects will have to undergo loan restructuring over the next few years.
This is because it expects a wave of projects exit the construction phase and enter operations. These projects will face either interest reset or loan refinancing dates.
This will coincide with the ramping up of project usage and revenues, and a more challenging financial market environment.
The rating agency further stated that demand for infrastructure will far exceed availability and the long-term economic value of many of these assets would remain strong.
It added that the pricing of project risks has varied over time and now depends more on the capital availability and the nature of sponsor-bank relationships.
However, it said that many rated projects have favourable profiles, which means having some debt carrying capacity.