INSUBCONTINENT EXCLUSIVE:
Moody's downgrade won't have an impact on the company's India business, according to MacrotechA Trump Tower developer in Mumbai has been
cut by Moody's Investors Service further into junk, reflecting deepening problems for the country's real estate sector.Macrotech
Developers, earlier known as Lodha Developers, has been cut by one step to Caa1, which indicates that the firm's debt obligation is
subject to very high credit risk
The company's $325 million bonds mature in March next year."While the company has made some progress in its refinancing efforts, its
measures to date do not completely alleviate the significant refinancing risks," said Sweta Patodia, a Moody's analyst.Property companies,
which have been increasingly relying on shadow banks for borrowing, are struggling to roll over debt as the lenders themselves are facing a
cash squeeze, raising prospects of a wave of defaults
A default by non-bank financier Dewan Housing Finance Corp
has also rattled investors this year.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.Moody's , which has a negative outlook
on Macrotech Developers' rating, said the company's two facilities -- secured against unsold inventory of London projects - are its
primary source to refinance its upcoming bonds
However, as the facilities cannot be drawn down immediately, and are subject to conditions, "liquidity risk remains elevated," it
added.(Except for the headline, this story has not been edited by TheIndianSubcontinent staff and is published from a syndicated feed.)Get
Breaking news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com
Catch all the Live TV action on TheIndianSubcontinent 24x7 and TheIndianSubcontinent India
Like us on Facebook or follow us on Twitter and Instagram for latest news and live news updates.
