Ind-Ra downgrades Lodha Developers' NCDs

Ratings agency India Ratings and Research (Ind-Ra) has downgraded ratings of Macrotech Developers (MDL) erstwhile Lodha Developers debt instruments to ‘IND BB’ from ‘IND BBB-’ and maintained ratings on Rating Watch Negative (RWN). India Ratings has downgraded the developer’s bank loans worth Rs 150 crore and non-convertible debentures worth Rs 495 crore to IND BB/RWN, the ratings agency said in a statement. The rating action reflects slower-than-expected progress on the company’s refinancing initiatives for its upcoming US dollar-denominated bond maturing in March 2020 and timely refinancing of domestic term debt. Timely creation of liquidity backup for the upcoming debt maturities in the second half of 2019-20 and 2020-21 amid the funding challenges being faced by the sector remains the key rating monitorable. The rating action also factors in weaker-than-expected operating performance in domestic residential market during April-October 2019.