I think we need to differentiate rating of InvIT trust from InvIT unit investment. The AAA rating is to debt taken by InvIT to finance assets and they have supeiror claim over InvIT unit holders. InvIT unit is broadly comparable to equity. Do we consider credit rating of debt company and yield of debt paper as quasi equity return? No, in my view. Similarly, investor in InvIT is taking business risk and hence can not consider as debt investors. The interest on loan of IRB InvIT is around 8% which is equivalent to AAA credit rating paper for debt investor. Yield of 13-14% is not certain and would undego change with toll change, traffic change, interest change, asset termination due to ageeement and foced event (likr Pathankot road closure in farmer protest). The additional 5% yield to invIt investor is to assume all other listed and many unknown unlisted risk. This is my view and may be wrong. However , would advise members not to consider credit rating of InvIt trust and current yield on InviT unit as same have differnt risk profiles.
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