Crisil upgrades rating of Technopark to A+/Stable

Our Bureau Thiruvananthapuram | Updated on July 26, 2021

John M Thomas, CEO, Technopark

Steady cash flow, occupancy level clinch it

Rating agency Crisil has upgraded Electronics Technology Parks Kerala (Technopark), Thiruvananthapuram, from A/Stable of the last two years to A+/Stable after reviewing its standalone business and financial risk profiles.

An official spokesperson said that the upgraded rating was achieved primarily on the discipline exercised by the IT infrastructure park on long-term bank facilities. This is the first time that Technopark has secured A+/Stable rating during the last 10 years of rating by Crisil.

Rating improves steadily

The rating steadily improved from D (Default) in 2014 to BB, BBB and A/Stable in 2019 and 2020. The improved rating recognises Technopark’s strengths which include a steady cash flow with full occupancy in Phases I and III, a diversified clientele and long-term lease agreements, the spokesperson said.

John M Thomas, CEO, Technopark, said that Technopark has maintained financial stability and track record to win this achievement despite adverse conditions that Covid has inflicted across the globe. In fact, Technopark added 40 companies to its tenant list during the pandemic, signaling its resilience.

Debt protection metrics

Technopark’s continuous improvement in financial position coupled with infrastructure development, operational efficiency, and strong plans have helped in achieving this goal, Thomas added.

Jayanthi L, CFO, Technopark said the rating reflects also strong debt protection metrics bolstered by ample liquidity. “Our cash flow has remained robust despite the offering of transitory relief to tenants for rent payment as well as forgoing rental escalation for fiscal 2020-21 on account of the pandemic.

Marquee co-developer list

Technopark has leased out IT office spaces in Phases I & III and the entire land parcel long-term to IT companies/IT co-developers in Phases I & II. The list of host companies includes Infosys, UST, TCS, EY, Allianz, IBS Software, Oracle, Nissan, SunTec, Tata Elxsi, and QuEST Global, among others.

The growing IT infrastructure facility is supported through co-developers such as Embassy-Taurus, Brigade Enterprises, Carnival Infopark, Seaview, Amstor House, and M-Squared.

Published on July 25, 2021

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