Moody's lowers Lodha view to negative

Moody's Investors Service said it affirmed the B2 corporate family rating of Lodha Developers Ltd.

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

The agency also said it changed the outlook to negative from stable.

The outlook revision reflects a weakening in Lodha's liquidity profile because of lower than expected operating sales and delays in execution of its planned asset sales, both in London and India, Moody's said.

Operating sales in both geographies in which the company operates, Mumbai and London, were weaker than expectations in the nine months that ended in December 2018, the agency said.

Sales in Mumbai, which were affected by the tight liquidity conditions of housing finance companies in India during the September 2018 to December 2018, have picked up in the quarter that ended March 2019, Moody's said.

The agency also said it expects the weakness in London to continue because of Brexit related uncertainties.

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