BENGALURU: The operator of Kempegowda International Airport, the Bangalore International Airport Limited (BIAL), has been assigned the prestigious AAA rating (Stable Outlook) by professional credit rating agencies, ICRA Ltd, India Ratings and Research Pvt Ltd and Crisil Ratings Ltd; Projections for the financial year ending March 31, 2025, indicate that BIAL’s operating income is set to increase by 20%.
AAA is the top-most credit rating, indicating the highest degree of safety regarding the timely servicing of financial obligations and the lowest credit risk.
An official release said, "This recognition highlights BIAL's solid market position as the third-largest airport in India and the largest in South India, with a passenger handling capacity of 51.5 million per annum."
"Some of the key credit strengths identified for BIAL include projected passenger traffic at the airport projected to increase by 10-11% in the financial year 2024-2025, reaching approximately 41-42 million from 37.5 million in the financial year 2023-2024. Additionally, the extension of BIAL’s concession agreement until 2068 provides a long tail period, enhancing its financial flexibility," noted the official statement.
BIAL's operating income is set to increase by 20% for the ongoing financial year and this growth is driven by the expansion of the airport, a steady increase in passenger numbers and higher aeronautical and non-aeronautical revenues, it said.
The strategic joint ownership by Fairfax Group (which holds a 64% stake), Siemens (10%), Airports Authority of India (13%), the Government of Karnataka (13%) further solidifies BIAL’s financial and operational capabilities, the release added.
Bhaskar Anand Rao, Chief Financial Officer of BIAL, said, “We are honored to receive the AAA rating from ICRA, India Ratings and Research, and Crisil. This recognition reflects our robust business model and our commitment to sustainable growth."
"With regulated aeronautical revenues and our strategic investments in expanding capacity and enhancing the passenger experience, we are well-positioned for continued success. Our focus remains on delivering long-term value to all stakeholders while maintaining a solid financial foundation,” he added.
BIAL has outlined ambitious plans to invest approximately Rs. 16,000 crores between the financial years 2025-2029, aiming to expand its capacity to 80 million passengers annually. This investment will focus on the expansion of Terminal 2, infrastructure upgrades, and other significant projects.
"This stable outlook underscores BIAL's potential for long-term growth, supported by strong financial flexibility and diverse income streams," the release said.