International agency Fitch Ratings has withdrawn ratings for various debt programmes for two listed real estate companies — Unitech and Parsvnath Developers Ltd — from its coverage. It has also removed them from analytical coverage.
A Fitch's report says, "The ratings have been withdrawn due to lack of adequate information. Fitch will no longer provide ratings or analytical coverage of Parsvnath and Unitech."
Parsvnath Developers Ltd was moved to the non-monitoring category on June 2, while Unitech was moved to the same category in March. This was done due to lack of clarity and information about the companies debt programmes.
The agency has withdrawn Unitech's national long-term rating of Fitch B-(ind)nm and bank loan ratings on various instruments, which includes short-term debt of Rs 1,100 crore, which entailed Fitch A4 (ind) nm.
An official from Unitech, seeking anonymity, said, "It is not a negative move for us. We had not sought their rating on the debt programmes and they had already moved us to the non-monitoring category in March." There was no official comment from the developer.
Simultaneously, the agency has withdrawn the Fitch B-(ind)nm rating on Parsvnath's long-term loans of Rs 200 crore and Rs 900 crore, and the 'Fitch A4 (ind) nm rating on its short-term loan of Rs 200 crore." It turns out to be a total debt burden of Rs 1300 crore.
The promoter and chairman of the company Pradeep Jain is travelling, and the company declined to comment on the development.