Moody's downgrades Lodha Developers' CFR to Caa1

Ratings agency Moody's Investors Service has downgraded the corporate family rating (CFR) of Macrotech Developers (MDL), erstwhile Lodha Developers, to Caa1 from B3. Moody's has also downgraded rating of the US dollar-denominated bonds issued by Lodha Developers International and guaranteed by MDL to Caa1 from B3 The outlook on all the ratings above is negative. MDL now has in place an executed loan agreement for $155 million, secured against the unsold inventory at Lincoln Square, one of its London projects. However, drawdowns under this facility remain subject to receiving the practical completion certificate for all units at the property, which is expected by December 2019. As per management estimates, practical completion certificates have been received for about 75% of the units in the development. MDL expects to secure another credit facility of around $195 million against the unsold inventory at Grosvenor Square, its second London project. However, documentation for this facility is currently in progress and will likely be completed over the next few weeks, Moody’s said.