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Puravankara Announces Credit Rating Upgrade by India Ratings and Research
Posted on: 21/Sep/2021 4:55:09 PM
Puravankara Limited today announced that the India Ratings and Research (Ind-Ra) had upgraded its long-term rating from `IND BBB+` to `IND A-`.
"We deeply value the Ind-Ra`s recognition of Puravankara`s management of debt obligation, a prudent business strategy that helped achieve this positive and stable upgrade. Our 46-year-old legacy is built on trust. The new rating is a testament to our unmatched integrity and credibility. It also strengthens our position as a favourable brand among customers and investors," said Ashish R. Puravankara, Managing Director, Puravankara Limited.
The positive rating can be attributed to a myriad of factors. Puravankara Limited has reduced its net debt while significantly increasing its pre-sales. Secondly, the company`sambitious launch pipeline,which will help monetise its large land bank and improve cash flows, was also an important contributor. Additionally, Puravankara`s net debt to net working capital is also expected to decline. One of the key drivers for the rating was its move towards de-risking and diversification of its geographic portfolio. Puravankara`s multiple sources of financing, timely receipt of regulatory approvals, and reduced project execution risk have also resulted in the ratings` upgrade.
The IND A- rating is seen as a milestone that scales our creditworthiness. It further determines Puravankara`s long-term future, which is currently rated as positive within the real estate market.
