Bangalore International Airport Limited (BIAL), the operator of Kempegowda International Airport Bengaluru (BLR Airport), has been assigned the prestigious AAA rating (Stable Outlook) by ICRA Ltd, India Ratings and Research Pvt Ltd and Crisil Ratings Ltd.
AAA is the top-most credit rating, indicating the highest degree of safety regarding timely servicing of financial obligations and lowest credit risk. 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 BLR Airport, projected to increase by 10-11% in FY2025, reaching approximately 41-42 million from 37.5 million in FY2024. Additionally, the extension of BIAL’s concession agreement until 2068 provides a long tail period, enhancing its financial flexibility.
Projections for FY2025 indicate that BIAL’s operating income is set to increase by 20%, and this growth is driven by the expansion of the airport, a steady increase in passenger numbers and higher aeronautical and non-aeronautical revenues. 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.
Commenting on this achievement, Mr. Bhaskar Anand Rao, Chief Financial Officer of Bangalore International Airport Limited, remarked, “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.”
BIAL has outlined ambitious plans to invest approximately Rs. 16,000 crores between FY2025 and FY2029, 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. The AAA rating emphasises BIAL’s operational scale, fueled by increasing passenger traffic, the launch of Terminal 2, and steady growth in revenues. This stable outlook underscores BIAL’s potential for long-term growth, supported by strong financial flexibility and diverse income streams.
