India Ratings Rates National Highways Infra Trust’s Proposed Zero-Coupon Bond ‘IND AAA’/Stable; Affirms Existing Ratings

NHIT, sponsored by NHAI, manages a diversified InvIT portfolio of 13 operational toll road assets spanning over 2,500 lane km across nine Indian states. As of FY24, InvIT fundraising exceeds ₹26,000 crore. 

Assets are held through two SPVs with cross-guaranteed cashflows, ensuring strong DSCR (avg. 2.0x). Round 3 acquisitions (~₹90 billion EV) are underway, to be funded via ₹45 billion debt and equity. Backed by marquee global investors and capped at 49% leverage under SEBI InvIT norms, NHIT benefits from pooled cashflows, robust structural protections, DSRA buffers, and geographical diversification. 

Toll revenue performance remains resilient, with low concentration risk and strong sponsor-led O&M. Future rating sensitivities include toll underperformance, weaker asset acquisitions, or breach of DSCR thresholds.