Cube Highways Trust has informed the Exchange regarding Credit rating Review on 18/04/2025
Awaiting price reaction for this filing.
India Ratings has assigned an IND AAA/Stable issuer rating and rated a new set of Non-Convertible Debentures (NCDs) worth INR 6.0 billion at IND AAA/Stable for Cube Highways Trust. Existing ratings on NCDs of INR 16.78 billion, bank guarantees of INR 2.5 billion, and a rupee term loan of INR 93.925 billion have been reaffirmed at IND AAA/Stable. The new NCDs were issued on 21 February 2025 and are tied to the acquisition of NAM Expressway Limited (NAMEL). Cube Highways Trust is an InvIT with 25 operational road assets spanning 1,940 km across 12 states, backed by strong global sponsors. The rating reflects healthy toll revenue growth (12% YoY in FY24, 7.5% in Q3 FY25), robust debt protection features including a 3-month DSRA, average DSCR of ~1.90x, and diversified cash flow pooling across projects.
The AAA rating with stable outlook — the highest possible — signals strong credit quality and ease of future borrowings at competitive rates. Existing unitholders can take comfort that the trust's debt servicing ability remains robust with comfortable coverage ratios and strong liquidity buffers (INR 14.1 billion surplus plus INR 4.56 billion DSRA). No negative rating action or watch has been triggered, suggesting stable fundamentals for the stock and continued eligibility for quarterly distributions.