India Ratings and Research has affirmed Sweta Estates Private Limited’s (Sweta) Long-Term Issuer Rating at ‘IND BBB-’The Outlook is Stable.
The company has deferred the launch of phase IV in its Central Park II project to 3QFY17 wherein the construction is in the nascent stage.
The FY17 cash flows are supported by the Rs. 2.2bn possession-linked payments expected against already sold flats of phase III. Around 450 flats were due for possession during FY16 for which occupancy certificates were finally received during May 2016 thus cash flows linked to possessions are likely in FY17.
Sweta’s refinancing requirement has increased on account of high levels of debt repayment during FY18-FY19 and less-than-expected cash inflows during the same period, which are contingent on the sales from the proposed launch of phase IV.