India Ratings placed realty developer under ‘rating watch negative’
Rating agency India Ratings and Research (Ind-Ra) has placed realty developer Lodha Developers debt rating of ‘IND BBB+’ on Rating Watch Negative (RWN). The Outlook was Positive. The rating agency has rated Lodha’s bank loans worth Rs 150 crore and non-convertible debentures worth Rs 495 crore BBB+ and has placed them on RWN. The RWN reflects uncertainty regarding the timing and quantum of cash flows from hiving-off its London asset, which may delay its deleveraging process and elevate risk related to its upcoming major debt repayments in 2019-20. According to India Ratings, Lodha’s lower than expected sales, continued high gross debt, upcoming bullet repayments for London project and uncertain timeline for conclusion of London assets sale, are key drivers for the rating action.
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