/ -- On 16 May 2020, CRISIL reaffirmed the 'CRISIL AAA/Stable' rating on INR 36.5 billion non-convertible debentures (NCDs) of Embassy Office Parks REIT (NSE: EMBASSY) (BSE: 542602) ('Embassy REIT').
Mike Holland, Chief Executive Officer of Embassy REIT, said, "Embassy REIT is India's first and only listed REIT. This assigned credit rating is an assessment of the inherent strengths of Embassy REIT such as our low LTV ratio, stable revenues, ample liquidity and a track record of delivery. Our core business proposition of predictable, cash flows and quarterly distributions generated through strong underlying properties and rental streams secured by high quality occupier base of largely multinational companies has resulted in this reaffirmation of the AAA/Stable status by CRISIL."
In its rating rationale, CRISIL stated, "The rating continues to reflect Embassy REIT's comfortable loan-to-value (LTV) ratio driven by low debt levels and strong debt protection metrics, supported by a cap on incremental borrowing and stable revenue from the underlying assets given high-quality commercial assets, high occupancy levels, and geographical diversification. These strengths are partially offset by susceptibility to volatility in the real estate sector, resulting in fluctuations in rental rates and occupancy."
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