Fitch too downgrades Macrotech Developers on low liquidity concerns

Fitch said the risks around Macrotech's ability to meet domestic debt maturities of Rs 2,000 crore, Rs 5,000 crore, and Rs 4,600 crore in FY20, FY21, and FY22, respectively, are rising

Global rating agency Fitch Ratings on Friday downgraded long-term issuer rating of Macrotech Developers (earlier Lodha Developers) by a notch to B- citing the real estate player’s weak liquidity management. This is the firm’s second rating cut this month.

Fitch has also downgraded the rating on the company’s $325-million senior unsecured bond due in March 2020 to B- with a recovery rating of ‘RR4’ from ‘B’/’RR4’, and has simultaneously placed all ratings on rating watch negative.

“The downgrade is due to the company’s weak liquidity management. Macrotech has relied on funding from domestic non-bank financial institutions (NBFIs), including housing finance firms, which