Ratings agency Moody's has affirmed B1 rating to real estate firm Indiabulls Real Estate on improved collections and continued reduction in debt.
Ratings agency Moody’s has affirmed B1 rating to real estate firm Indiabulls Real Estate on improved collections and continued reduction in debt.
“We estimate that IBREL made collections of over Rs 7 billion in the quarter ended December 2015, which was nearly double the amount it achieved in the quarter ended September 2015,” Moody’s Vice President and Senior Credit Officer Vikas Halan said.
The company’s sales and collections were generated mostly from the projects in Mumbai – Indiabulls BLU, Indiabulls Green (Panvel) and Indiabulls Golf City (Savroli) with projects in Gurgaon near New Delhi – Indiabulls Mint and Indiabulls Imperial yet to be launched.
In terms of debt reduction, the company reported a reduction in net debt of Rs 2.25 billion for the quarter taking the total net debt reduction to Rs 5.52 billion for the nine months ended December 2015, Moody’s Investors Service said in a statement.
“Moody’s Investors Service today affirmed the B1 corporate family rating of Indiabulls Real Estate Ltd (IBREL),” it added.
The outlook on the ratings is stable.
At the same time, Moody’s also affirmed the B1 rating on USD 175 million 10.25 per cent notes due in 2019 issued by Century Ltd and guaranteed by IBREL.
The stable outlook reflects that the company will continue to achieve its target for debt reduction through improvements in cash flow from operations, asset sales and, if needed, further equity infusions by the promoter, Moody’s said.
The outlook also incorporates expectations that the company’s operating sales and collections will continue to improve over the next 12 months and that it will make no acquisitions of land parcels, it added.