Business Standard

Brickwork downgrades Peninsula Lands debentures from 'A' to 'BBB-'

The rating downgrade factors in high refinancing risk given consolidated ongoing project debt repayments of Rs 663 cr from July 2019 to March 2020 and Rs 417 cr in FY21, as there is slowdown in sales

The new facility will be over  and above the existing  finance schemes of the housing sector regulator

Representative image

Abhijit Lele Mumbai
Brickwork has downgraded the rating for debentures of Peninsula Land, real estate unit of the Ashok Piramal Group, from “A” to “BBB-“. It also revised the outlook from “stable” to “negative”. This rating downgrade and change in outlook factor in high refinancing risk and sluggish demand in the realty sector.
The rating action also takes into account relatively slow bookings and funding risks associated with the company’s ongoing projects. Further, the sales velocity and collections are expected to remain low. This may put pressure on the cash flows, necessitating refinancing or mobilisation of additional funds to repay the debt

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First Published: Sep 30 2019 | 1:44 AM IST

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