Moody's Investors Service has downgraded the corporate family rating (CFR) of Macrotech Developers Ltd (MDL), earlier known as Lodha Developers.
According to Bloomberg, Moody's has downgraded the CFR of Macrotech Developers Ltd (MDL) to Caa1 from B3, which indicates that the firm's debt obligation is subject to very high credit risk. The company's USD 325 million bonds mature in March next year. Sweta Patodia, a Moody's analyst told Bloomberg, "While the company has made some progress in its refinancing efforts, its measures to date do not completely alleviate the significant refinancing risks."
At the same time, Moody's has downgraded to Caa1 from B3 the backed senior unsecured rating of US dollar-denominated bonds issued by Lodha Developers International Limited and guaranteed by MDL.
MDL now has in place an executed loan agreement for 155 million dollars, secured against the unsold inventory at Lincoln Square, one of its London projects. However, drawdowns under this facility remain subject to receiving the practical completion certificate for all units at the property which is expected by December. As per management estimates, practical completion certificates have been received for about 75 per cent of the units in the development.
Macrotech has in place arrangements to repay all of the $325 million of bonds, according to an emailed comment from a company spokeswoman. That includes $150 million to be raised via the refinancing of London real estate inventory; a $100 million line from a family office and around a $70 million surplus from the sale of a commercial building in India. Moody's downgrade won't have an impact on the company's India business, according to Macrotech.
