Raajmarg Infra Investment Trust Earns AAA Rating for Safety
In a notable achievement for India’s infrastructure sector, the Raajmarg Infra Investment Trust (RIIT), sponsored by the National Highways Authority of India (NHAI), has secured a AAA (Stable) rating from CARE Ratings Limited for its long-term bank facilities. This prestigious rating signifies a high level of safety and reliability in RIIT’s debt instruments, positioning it as one of the most secure investment opportunities for investors.
The AAA (Stable) rating is the highest available, indicating RIIT’s solid financial stability and exceptionally low probability of defaulting on its debts. Moreover, the ‘Stable’ outlook suggests that this favorable rating is likely to remain consistent in the near future.
According to CARE Ratings, the strength of the rating significantly stems from the NHAI’s experience, credibility, and successful history in the roads and highways sector. The organization’s asset monetization program played a crucial role in this rating, highlighting its strategic importance. So far, NHAI has successfully monetized road assets worth approximately ₹1.43 lakh crore.
Supporting Infrastructure Growth
To further enhance NHAI’s asset monetization initiative, RIIT has recently gained approval from the Securities and Exchange Board of India (SEBI) to operate as an Infrastructure Investment Trust (InvIT). This Public InvIT aims to unlock the potential for monetizing national highway assets, providing a high-quality and long-term investment solution aimed primarily at retail and domestic investors. This initiative is an essential step in increasing public involvement in the growth of India’s national highway infrastructure.
The establishment of RIIT as a robust investment platform underscores the commitment to bolstering infrastructure development and promoting sustainable capital formation in India. With the AAA (Stable) rating, RIIT not only signifies its readiness to provide a secure investment avenue but also reinforces its role as a catalyst in driving forward the nation’s infrastructure ambitions
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