Fitch upgrades four real estate firms

News Posted - 2010-05-02

NEW DELHI: Credit rating agency Fitch on Tuesday placed four real estate companies — Unitech, Omaxe, Ansal Properties and Parsvnath — on rating watch positive, in view of the improvement in industry fundamentals. Rating watch positive reflects the possibilities that the ratings can either be upgraded or affirmed at the current levels, Fitch said.

Fitch said sustainable operating performances, continued de-leveraging by developers over a longer period could lead to rating upgrades in the second half of the year. “The fundamentals of the domestic realty sector are improving, as seen by better liquidity and improved demand,” Fitch said.

All these companies reported increased year-on-year residential volume sales in FY10. It said enhanced affordability, lower mortgage rates, and better job security have helped revive demand for homes.

Demand in the commercial segment, however, remains weak. Fitch said it expects demand for commercial spaces to improve in the second half of this fiscal, consequent to the expected resumption of hiring in key sectors like IT/ITES and financial services.

A substantial amount of equity funds raised and non-core asset sales by real estate companies have been utilised in the repayment of debt and interest costs, which has helped developers in general deleverage their balance sheets.

Overall, credit metrics are expected to recover in 2010 and 2011, as developers are expected to improve their capital structure, operating margins, and liquidity.

Source: ET 28/4/10

Fitch launches its new India portal

Fitch Ratings has today launched its new website for India (www.fitchindia.com).

This upgraded site offers significantly enhanced search features and simplified access for registered users to Fitch Ratings India website's free-to-view content. These improvements were made after detailed analysis and more importantly with feedback from market participants; and further shows Fitch's commitment to offering investors, issuers and other market players the highest level of transparency and cutting edge research in credit analysis.

"Our goal is to provide our visitors a simplified, informative and easy to use portal which will provide rating related information with just few clicks. You can now view complete rating rationales of Indian rated entities," said Amit Tandon, Managing Director, Fitch Ratings India on the occasion of the launch of the new website.

A user-friendly interface also allows visitors to easily access archived and cross-referenced data on rating histories, as well as Fitch's widely followed special reports/commentaries, credit updates, and a host of other ratings related information.

"We have streamlined the site's navigation making it more intuitive and simple to use through a visual navigation system," said Satish Nair, Associate Director, Investor Development and Media Outreach.

Other new features include an interactive, up-to-date calendar of events where subscribers can get automated reminders of various investor education initiatives. What's more, visitors can now create secure individual profiles with their preferred topics of interest which can be saved and updated.

Source: BS 19/4/10