dyslexokkk
04-03-2010, 02:18 PM
Credit rating agency Fitch today downgraded the ratings of real estate developer Purvankara Projects and its debt programme by one notch due to financial constraints for the firm as housing environment remains tough. Fitch downgraded the Bangalore-based developer and its Rs 500-crore long-term debt to&aposBBB&aposfrom A- and placed them on Rating Watch Negative (RWN). RWN indicates that the ratings could either be downgraded further or remain at the current level.
“The downgrades reflect the difficult housing environment and Fitch&aposs expectations that the housing downturn will be even more challenging than previously anticipated in 2009,”the agency said in a release issued here. The rating agency&aposs outlook of Indian real estate sector in 2009 continues to remain negative. Fitch expects that the company&aposs profit margin, credit profile and cash flow will continue to be under pressure as the housing environment remains tough in the short term. The rating downgrades also consider the company&aposs liquidity risk, as the company requires refinancing to service its existing debt obligations.
“The downgrades reflect the difficult housing environment and Fitch&aposs expectations that the housing downturn will be even more challenging than previously anticipated in 2009,”the agency said in a release issued here. The rating agency&aposs outlook of Indian real estate sector in 2009 continues to remain negative. Fitch expects that the company&aposs profit margin, credit profile and cash flow will continue to be under pressure as the housing environment remains tough in the short term. The rating downgrades also consider the company&aposs liquidity risk, as the company requires refinancing to service its existing debt obligations.