Fitch cuts Macrotech

Fitch Ratings said it downgraded Macrotech Developers Ltd.’s long-term issuer default rating to CCC from B-. Fitch also downgraded the rating on the company’s $325 million 12% senior unsecured bond due March 2020, which was sold by Lodha Developers International Ltd. and guaranteed by MDL and certain subsidiaries, to CCC with a recovery rating of RR4 from B-/RR4.

“The downgrade reflects MDL’s deteriorating liquidity position as the company has only raised £120 million (around $155 million) towards repaying the $325 million bond due on 13 March 2020, compared with our expectations that the company will be able to raise the full amount by mid-November 2019. The availability of the £120 million facility, which is secured against the unsold inventory at the Lincoln Square (LSQ) project, poses some execution risks as it is subject to the practical completion of the units, which MDL expects by December 2019. In addition, MDL plans to obtain a £150 million loan facility by end-December 2019, which will be secured against the 1 Grosvenor Square project in central London,” said Fitch in a press release.

Fitch said it removed all ratings from rating watch negative.

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