Global rating Agency Fitch has downgraded the Ratings for Indian Real Estate Companies including DLF, Ansal Properties and Unitech.
- DLF has been downgraded from F1+ to F1 due to reduced liquidity position, which is driven by an overall slowdown in the real estate sector, resulting in slower sales and significant receivables from DLF Assets Ltd [Privately Held Company].
- Unitech – Long Term Debt rating is down to A- from A+ and outlook revised to Negative from Stable. Likely negative impact of the rapidly deteriorating real estate sector on Unitech’s ability to service debt given its current cash flow generation and amortising debt structure and reduced liquidity position.
- Ansal Properties and Infrastructure – Long term debt rating has been revised to BBB- from A- and outlook revised to Negative from Stable. Weaker than expected operating results, higher financial leverage levels than previously anticipated and reduced liquidity position resulting in increased refinancing risk.
Other who have faced the ire include Omaxe, Parsvnath and Sobha in Q3 of 2009.