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Moody's upgrades Lodha Developers' rating outlook to positive

Press Trust of India  |  New Delhi 

agency Moody's has upgraded the outlook of realty Developers (LDL) to positive from stable on expectation of improvement in the company's operating sales.

Developers plans to raise about Rs 5,500 crore through its proposed initial public offer (IPO).

"The positive outlook on LDL's ratings reflect our expectation that the improvement in the company's operating sales and collections will be sustained and will lead to an improvement in its financial profile, such as to support a higher over the next 12-18 months," Moody's said.

has affirmed LDL's B2 corporate family (CFR) and also the B2 backed senior unsecured debt rating of the US-dollar denominated bonds issued by Developers International Ltd and guaranteed by

Moody's has also changed the outlook on the ratings to positive from stable, the agency said in a statement.

"We expect LDL's operating sales to further improve by 15%-18% in FY19. Further, we expect the increase in its cash collections, largely driven by projects, to be higher than increase in its construction spending, such that company will report a positive cash flow from operations," said Ranasinghe.

Moody's estimated that the company will raise total proceeds of around Rs 55 billion, the majority of which the company will apply to debt reduction.

is the largest in by sales of residential apartments. The company is focused on residential development in the Mumbai Metropolitan Region, with some projects in nearby Pune. The company and its promoters expanded into the market by acquiring two properties, now in the process of development, Moody's said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, July 12 2018. 19:50 IST