The rating agency has also affirmed the $325 million, 12% senior unsecured bond due in 2020, issued by Lodha Developers International Limited and guaranteed by Lodha and certain subsidiaries, at 'B' with a Recovery Rating of RR4. Fitch pointed out that the Mumbai-based developer received a GBP25 million advance for the planned 28% stake sale in its London projects and that further sales would alleviate liquidity risk. Fitch has warned that failure to execute its refinancing plan may result in the rating being downgraded by one or more notches. “Lodha is one of the highest leveraged companies among 'B' category property-developer peers in Asia Pacific," Fitch said. According to the rating agency, Lodha’s domestic pre sales are likely to grow 7% annually over FY19-22, supported by demand growth in the affordable segment in light of a substantial housing deficit and government initiatives.

Source: Mint May 07, 2019 11:59 UTC