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Moody’s Investors Service, a global rating agency, has assigned a (P) Ba3 corporate family rating for Lodha Developers Pvt Ltd (LDPL), which is India’s largest real estate developer.
This international rating agency has also assigned a provisional (P) Ba3 rating to the proposed US dollar denominated Notes to be issued by Lodha Developers International (Mauritius) Ltd, a wholly owned subsidiary of LDPL.
The outlook on the ratings is stable. This is the first time Moody’s has assigned ratings to LDPL.
The stable outlook reflects Moody’s expectation that LDPL will substantially achieve its sales targets; execute its construction plans without material delays; and stay disciplined in acquisitions for its land bank in India over the next 2-3 years.
The provisional status on the ratings will be removed upon the successful completion of the bond issue and upon review of the final documentation, Moody’s has said.
"The rating incorporates our expectation that liquidity will improve following the proposed bond issuance and that credit metrics will strengthen over the next two years as key projects reach revenue-recognition thresholds," said Vikas Halan, Moody's Vice President and Senior Credit Officer.
LDPL's borrowings have doubled from ₹ 4,600 crore in 2011-2012 to Rs 9,200 crore in 2013-2014 (excluding borrowings at London of ₹ 3,100 crore).
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