Fitch cuts Ansal Properties loans to BBB-(ind)

Fitch Ratings said it downgraded Ansal Properties & Infrastructure Ltd.'s long-term issuer rating to BBB-(ind) from A-(ind), along with the rating on its Rs.1000 million long-term debt program to BBB-(ind) from A-(ind), Rs.1000 million short-term debt rating to F3(ind) from F1(ind), of which Rs.500 million is to be carved out of fund-based working capital limits. Fitch also downgraded the company's long-term bank loans aggregating Rs.710 million and fund-based working capital limits of Rs.1721.5 million, consisting of cash credit and overdraft, to BBB-(ind) from A-(ind) and its short-term bank loans aggregating Rs.200 million and its non-fund based working capital limits of Rs.1,500 million to F3(ind) from F1(ind).

The outlook was revised to negative from stable.

The downgrades 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.

The company's total adjusted net debt-to-EBITDAR ratio has deteriorated sharply to 4.4x, versus 1.8x a year ago, mainly due to operating profits being lower than projected, the agency said.

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