InvITs in road sector enhances credit quality of about Rs 46,000 cr debt: Crisil

New Delhi: Aided by regulatory guardrails and structural benefits, infrastructure investment trusts (InvITs) in the road sector have enhanced the credit quality of around Rs 46,000 crore debt till now, said Crisil, credit rating agency on Tuesday. According to Crisil, since 2016, 19 InvITs have been registered in India and these include 11 from the roads sector of which nine have been floated or are set to be launched soon.

9 InvITs comprise 94 road assets valued over Rs 1.1 lakh crore: Crisil

These nine InvITs comprise 94 road assets valued over Rs 1.1 lakh crore, Crisil said. It also added that toll roads account for 70 percent of the annuity, annuity with toll and hybrid annuity models comprise 13 percent, 11 percent and six percent, respectively.

Historically, Crisil said that credit profiles of toll roads had seen challenges, such as high leverage, long delays in construction and lower-than-expected traffic. "InvITs have addressed many of these problems," it added.

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