S&P withdraws corporate credit rating of IBREL on request

S&P Global Ratings today said it has withdrawn long-term corporate credit rating on Indiabulls Real Estate at the company's request.
The agency said that it has "affirmed its 'B+' long-term corporate credit rating on Indiabulls Real Estate Ltd (IBREL) with a stable outlook. We then withdrew the rating at the company's request."
It also affirmed and then withdraw the 'B+' long-term foreign currency issue rating on the outstanding senior unsecured notes issued by Century Ltd, a special purpose vehicle. IBREL guarantees the notes.
"At the time of the withdrawal, the stable outlook reflected improved levels of cash collections as IBREL completed the construction of several development projects.

"It also reflected our expectation that the company will continue to achieve its target for debt reduction," the rataing agency said.
IBREL has progressively reduced debt via the disposal of non-core assets and equity issuance.

Foreign currency exposure has reduced as IBREL has progressively bought back USD 122.8 million of its USD 175 million senior unsecured notes, the statement said.
"We assessed IBREL's liquidity as adequate. The company has cash and equivalents of about Rs 15 billion as of March 31, 2016. We believe that IBREL has the ability to scale back its capital expenditure or dispose of assets in a liquidity crunch," S&P Global Rating said.

Indiabulls Real Estate has reduced its net debt by 16 per cent to Rs 4,617 crore during the last fiscal.