Moody’s downgrades Lodha

Moody's Investors Service said it downgraded the corporate family rating of Lodha Developers Pvt. Ltd. to B2 from B1.

Moody's also said it downgraded the senior unsecured debt rating of the dollar-denominated bonds issued by Lodha Developers International Ltd. and guaranteed by Lodha Developers to B2 from B1.

The outlook on the ratings is negative.

The downgrades reflect an expectation that the operating environment for the Indian real estate sector will continue to remain weak post the demonetization exercise that took place in November 2016, Moody’s explained.

Sales volumes in the Indian residential market decreased by more than 40% in the fourth quarter of 2016 compared to the same period in 2015, the agency added.

As a result, the company’s financial profile is no longer consistent with the previous B1 corporate family rating, Moody’s said.

Weak operating conditions also are expected to continue pressuring Lodha’s sales performance over the next 12- to 18-months, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.