Rating Announcement Details

Acuité Ratings & Research assigned Roadstar Infra Investment Trust (RIIT) an 'ACUITE AA (Stable)' long-term credit rating, according to a March 27, 2026 filing. This rating applies to the trust's planned Rs 3,300 Crore borrowing program.

Benefits of Refinancing

This refinancing aims to streamline RIIT's finances by centralizing debt servicing at the Trust level. The move is expected to remove refinancing and covenant risks previously faced by individual Special Purpose Vehicles (SPVs).

RIIT's Background

Roadstar Infra Investment Trust (RIIT) operates toll road assets and is managed by Ashoka Concessions Limited, a subsidiary of Ashoka Buildcon Limited. In August 2023, Acuité Ratings & Research reaffirmed an 'ACUITE AA-' rating for RIIT's bank loan facilities, showing a consistent strong credit assessment.

Structural Improvements

Consolidating debt at the InvIT level will simplify RIIT's capital structure. Pooled cash flows from SPVs will service the Trust's debt, while refinancing and covenant risks at the SPV level are expected to be eliminated.

Key Risks and Liabilities

Despite the strong rating, risks persist. Acuité's reports have highlighted potential penalties and deductions at the SPV level, including pending balance costs of approximately Rs 80 crore. Execution risks such as traffic volatility and regulatory interventions remain. Contingent liabilities stood at Rs 320.05 crore as of December 31, 2025. Future asset acquisitions could also increase leverage.

How RIIT Compares

RIIT's 'ACUITE AA (Stable)' rating positions it alongside major Indian infrastructure InvITs. Peers like IRB InvIT Fund, IndiaGrid Trust, and PowerGrid Infrastructure Investment Trust typically hold credit ratings in the 'AA' band, reflecting the stable cash flow profiles of their infrastructure assets.

Financial Metrics

As of December 31, 2025, RIIT's Net Debt to Enterprise Value Ratio was approximately 36.1%. Contingent liabilities were Rs 320.05 crore.

Looking Ahead

Investors will track how future asset acquisitions affect leverage. Key developments to watch include regulatory changes and the successful implementation of centralized debt servicing.