Real estate major DLF Limited on November 29 said that it has received a rating upgrade from the country's premier rating agency ICRA to AA- with Stable Outlook.
This follows the recent rating upgrade done by another premier rating agency CRISIL in August. The long term rating has been upgraded to CRISIL AA-/Stable, it said in a regulatory filing.
The rating upgrade demonstrates the strong business fundamentals of the company and reflects the underlying improvement in the operating performance.
Some points cited for the upgrade include strong sales momentum from new product launches across Gurugram; Consistent reduction in net debt with improved collections and surplus cashflows; Prime land parcels in marquee locations which are at historical costs and are fully paid and steady monetisation of completed inventory across the country, it said.
A new product pipeline of 35 msf across geographies and segments will enable scaling up and consequently ensure steady cash flows over the following years. The company additionally draws strength from its large rental portfolio which continues to deliver resilient performance and is now witnessing renewed demand, it said.
“These rating upgrades from ICRA & CRISIL demonstrate the strength of the DLF brand and its strong business fundamentals. We continue to remain focussed on scaling up our new product launches, new sales bookings and collections. These upgrades will allow us to further strengthen our access to capital and improve our debt profile in the near term,” said Vivek Anand, Group Chief Financial Officer, DLF Ltd.DLF has developed 153 real estate projects and developed an area of approximately 330 million square feet. It has 215 msf of development potential across the residential and commercial segment. The group has an annuity portfolio of over 36 msf. DLF is primarily engaged in the business of development and sale of residential properties and the development and leasing of commercial and retail properties.