ICRA revises ‘Positive' outlook on DLF's bank facilities worth Rs6,717.52 crore; stock adds ~1%

24 Aug 2022 , 03:29 PM

DLF Limited informed that the rating agency ICRA Limited has revised the outlook to ‘Positive’ from ‘Stable’, and has reaffirmed the ratings assigned to company’s bank facilities.

ICRA has reaffirmed the ‘ICRA AA-’ rating on the company’s non-convertible debentures, Fund-based - Term loan, Fund-based - Working capital facilities, and non-fund based - Working capital facilities/Bank guarantee. However, the outlook on these facilities has been revised from ‘Stable’ to ‘Positive’.

Company’s commercial paper has been assigned an ‘A1+’ rating with the same revision in its outlook.

The ratings were reaffirmed on the back of DLF Limited's (DLF) strong sales and collections in FY2022 and Q1FY2023, which allowed a considerable reduction in net debt, stated ICRA in its rationale.

Total bank facilities reviewed by ICRA are worth Rs6,717.52 crore.

ICRA also highlighted that the ratings are bolstered by DLF's strong market position and established brand, particularly in the National Capital Region (NCR), as well as its low-cost and fully paid-up land bank, which has well-located parcels across multiple cities and diverse land usages, providing strong visibility of launches with robust profitability.

At around 3.09 PM, DLF was trading at Rs372 up by 1.06% from its previous closing of Rs368.10 on the BSE. The scrip touched intraday high and low of Rs373.25 and Rs368.25 respectively.

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