Reliance Infrastructure’s (RInfra) ₹2,500-crore Infrastructure Investment Trust (InvIT) fund has been assigned AAA (triple A) rating by CARE and ICRA, indicating a stable outlook for the issue.

RInfra, billionaire Anil Ambani group’s flagship company, was looking to raise ₹2,500 crore through the InvIT Fund, with a probable launch date in June. CARE has assigned an issuer rating of CARE AAA(Is): Stable. The rating derives strength from the substantial repayment of combined debt from the proceeds of the initial public offer, while it takes into account a favourably diversified portfolio of the company’s toll-road assets

with a reasonable operational track record. The proposed InvIT will own 100 per cent of six project special purpose vehicles (SPVs) and 74 per cent in one of the SPVs, GF Toll Road Pvt Ltd. Each of these projects is structured into separate SPVs which owns, operates and maintains a toll-road project.

Except GF, all other project SPVs are National Highways Authority of India (NHAI) toll-road projects.

ICRA, a Moody’s Investors Service company, has assigned a long-term rating of IrAAA to RInfra InvIT. The rating carries a stable outlook and reflects the strength of the seven operational road SPVs proposed to be included in the InvIT.

The rating is supported by InvIT’s strong debt coverage indicators providing ample cushion for external debt servicing in the event of wide fluctuations in toll collections. Further, low level of leveraging and high tail period of around eight years provides financial flexibility.

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