CRISIL reaffirms rating of Mindspace Business Parks REIT

CRISIL Ratings has reaffirmed its rating on market-linked debentures (MLDs), NCDs and commercial paper at 'CRISIL PPMLD AAAr/CRISIL AAA/Stable/CRISIL A1+'. The corporate credit rating has been renewed and reaffirmed at 'CCR AAA/Stable'. CRISIL Ratings has also withdrawn its 'CRISIL PP-MLD AAAr/Stable' rating on Rs 500 Crore Long Term Principal Protected Market Linked Debentures at the company's request and on receipt of requisite documents. The instruments have been fully redeemed. The action is in line with CRISIL Ratings' policy on withdrawal of ratings.

Mindspace REIT is sponsored by the K Raheja Corp group. The REIT owns eight special purpose vehicles (asset SPVs) comprising 10 commercial offices, information technology (IT) parks and special economic zone (SEZ) assets, and houses the facility management division.

The ratings continue to reflect Mindspace REIT's comfortable net loan-to-value (LTV) ratio, characterized by low debt, strong debt protection metrics supported by a cap on incremental borrowings, and stable revenue profile of the assets, amidst benefits of healthy occupancy and geographic diversification. The strengths are partially offset by susceptibility to volatility in the real estate sector, causing fluctuations in rental rates and occupancy levels.

Source : Equity Bulls

Keywords

MindspaceBusinessParksREIT RatingUpdte