BSECube Highways TrustMediumNeutral
Announced Thu, 14 Aug · 23:36 IST

Cube Highways Trust has informed the Exchange regarding Disclosure of material issue

Court Stay ObtainedRegulatory & Legal View source PDF
Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Cube Highways Trust has disclosed credit rating actions from ICRA and India Ratings. ICRA reaffirmed [ICRA]AAA(Stable) for the existing Rs. 10,450 crore term loan, Rs. 250 crore bank guarantee, and NCDs totaling Rs. 3,042 crore, and assigned [ICRA]AAA(Stable) for a fresh Rs. 825 crore NCD programme yet to be placed. India Ratings affirmed IND AAA/Stable on the issuer rating, Rs. 3,430 crore of NCDs, Rs. 8,315 crore of bank facilities, and IND A1+ on Rs. 1,350 crore of commercial papers, and assigned IND AAA/Stable on proposed NCDs of Rs. 825 crore. The Trust now operates 27 road assets with projected average DSCR above 1.8x and net leverage around 56%. As part of the rationale, ICRA noted that the High Court has granted a stay on further deductions for the Mangloor Highways (MHPL) SPV, where a ~Rs. 135 crore penalty from NHAI is under arbitration.

Likely market impact

Reaffirmation of the highest AAA rating across all debt instruments signals strong financial health and easy access to low-cost borrowing for the InvIT, which is positive for unitholders. The High Court stay on the MHPL penalty protects near-term cash flows from a potentially material deduction.