Fitch downgrades credit rating of Ansal Properties
With a downturn in real estate markets affecting the financial profile of Ansal Properties and Infrastructure Ltd, Fitch Ratings today downgraded the long-term credit rating of the property firm and revised its outlook to negative from stable.
By PTI |
NEW DELHI: NEW DELHI: With a downturn in real estate markets affecting the financial profile of Ansal Properties and Infrastructure Ltd, Fitch Ratings today downgraded the long-term credit rating of the property firm and revised its outlook to negative from stable.
Ratings on the real estate company's various debt programmes were also revised downwards by Fitch. "The rating actions reflect weaker than expected operating results and higher financial leverage levels than previously anticipated due to the downturn in the real estate market," Fitch said in a statement here.
Ansal's Long-term Issuer Rating as well as its Rs 1,000 crore debt programme was downgraded to BBB- from A-.
The company's Rs 100 crore short-term debt rating was also revised down to F3 from FI. Fitch also similarly downgraded the rating of Ansal's long-term bank loans aggregating Rs 71 crore and fund-based working capital limits and short-term banks loans of Rs 20 crore.
Even after downgrade, all these ratings are in the investment grade category. Fitch said Ansal's gross debt has increased substantially to Rs 1,090 crore in 2007-08 from Rs 470 crore a year ago. .
Ratings on the real estate company's various debt programmes were also revised downwards by Fitch. "The rating actions reflect weaker than expected operating results and higher financial leverage levels than previously anticipated due to the downturn in the real estate market," Fitch said in a statement here.
The company's Rs 100 crore short-term debt rating was also revised down to F3 from FI. Fitch also similarly downgraded the rating of Ansal's long-term bank loans aggregating Rs 71 crore and fund-based working capital limits and short-term banks loans of Rs 20 crore.
Even after downgrade, all these ratings are in the investment grade category. Fitch said Ansal's gross debt has increased substantially to Rs 1,090 crore in 2007-08 from Rs 470 crore a year ago.
Ratings on the real estate company's various debt programmes were also revised downwards by Fitch. "The rating actions reflect weaker than expected operating results and higher financial leverage levels than previously anticipated due to the downturn in the real estate market," Fitch said in a statement here.
Ansal's Long-term Issuer Rating as well as its Rs 1,000 crore debt programme was downgraded to BBB- from A-.
The company's Rs 100 crore short-term debt rating was also revised down to F3 from FI. Fitch also similarly downgraded the rating of Ansal's long-term bank loans aggregating Rs 71 crore and fund-based working capital limits and short-term banks loans of Rs 20 crore.
Even after downgrade, all these ratings are in the investment grade category. Fitch said Ansal's gross debt has increased substantially to Rs 1,090 crore in 2007-08 from Rs 470 crore a year ago. .
Ratings on the real estate company's various debt programmes were also revised downwards by Fitch. "The rating actions reflect weaker than expected operating results and higher financial leverage levels than previously anticipated due to the downturn in the real estate market," Fitch said in a statement here.
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Ansal's Long-term Issuer Rating as well as its Rs 1,000 crore debt programme was downgraded to BBB- from A-. The company's Rs 100 crore short-term debt rating was also revised down to F3 from FI. Fitch also similarly downgraded the rating of Ansal's long-term bank loans aggregating Rs 71 crore and fund-based working capital limits and short-term banks loans of Rs 20 crore.
Even after downgrade, all these ratings are in the investment grade category. Fitch said Ansal's gross debt has increased substantially to Rs 1,090 crore in 2007-08 from Rs 470 crore a year ago.
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