Did NHAI’s Raajmarg Infra Investment Trust Just Get a AAA Rating with a 'Stable' Outlook?
Synopsis
Key Takeaways
New Delhi, Jan 2 (NationPress) The National Highways Authority of India (NHAI) announced on Friday that its Infrastructure Investment Trust (InvIT) - Raajmarg Infra Investment Trust (RIIT) - has been awarded a AAA (Stable) rating for its long-term bank facilities by CARE Ratings Limited.
This premier rating highlights the exceptional level of safety and reliability associated with the debt instruments of RIIT, positioning it as one of the most trustworthy investment opportunities for investors.
“This achievement cements RIIT’s role as a strong, investor-friendly platform that fosters India’s infrastructure development and sustainable capital growth,” stated the ministry.
The AAA (Stable) rating indicates the highest level of creditworthiness, signifying RIIT’s solid financial status and a remarkably low likelihood of defaulting on its obligations.
The ‘Stable’ outlook suggests that the rating is anticipated to remain stable in the short to medium term.
CARE Ratings emphasized that the rating derives considerable strength from the extensive experience, reliability, and established history of RIIT’s sponsor, NHAI, in the roads and highways sector.
Moreover, the strategic significance of NHAI’s asset monetization initiative was a crucial factor in this assessment.
To date, NHAI has effectively monetized road assets valued at approximately Rs 1.43 lakh crore.
Recently, Raajmarg Infra Investment Trust (RIIT) obtained approval from the Securities and Exchange Board of India (SEBI) as an Infrastructure Investment Trust (InvIT).
This Public InvIT is designed to unlock the monetization potential of National Highway assets while providing a high-quality, long-term investment vehicle primarily focused on retail and domestic investors.
This initiative represents a significant milestone in enhancing public participation in the growth narrative of National Highway infrastructure.
The Ministry of Road Transport and Highways reiterated that the Public InvIT aims to realize the monetization potential of National Highway assets while creating a premium, long-term investment option primarily for retail and domestic investors.