India Rating and Research (Ind-Ra) better known as Fitch Ratings has assigned ‘A+’ rating to Sunteck Realty’s long term bank facilities. The rating agency has also assigned ‘A1+’ rating to the company’s short term bank facilities. The ‘A+’ rating indicates adequate degree of safety regarding timely servicing of financial obligations and carry low credit risk.
Ind-Ra ratings takes into account strong cash flow visibility, cash & bank balance of Rs 110 crore at end-March 2015 and almost un-utilised overdraft/cash credit facility of Rs 400 crore. The ratings also takes into account accretive projects in two locations namely Bandra Kurla Complex (BKC) and Goregaon in Mumbai, high profitability, prudent land acquisitions, limited refinancing risk, moderate leverage and sales efficiency ratio, project clearances and regulatory risks.
Sunteck Realty primarily focuses on the development of ultra premium and luxury residential properties in city-centric locations of Mumbai. Its development activities include multi-unit apartment buildings, block re-developments, planned communities and commercial spaces.
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