Owing to macroeconomic risks and company specific issues, Fitch assigned negative ratings for the outlook of Indian infrastructure projects. The ageÂncy ideÂntifies risks from equity capital constraints, high interest raÂtes, slowing GDP growth and currency depreciation to affect infrastructure projects. This is in addition to fuel shortages, execution delays for power and prospects of slowing traffic groÂwth for transportation.
Fitch said sponsors with strÂetched balance sheets will struÂggle to raise funds for a growing number of construction projects and to support underperforming assets, largely because of the weak and volatile stock market. So, developers may be forced to selectively support projects with a long-term economic value in contrast to their earlier strategy of preÂserÂving bank relationships by proÂpping up projects.
Contact: Fitch Ratings India
Tel: 044-4340 1700
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