CRISIL reaffirms credit ratings of Mindspace REIT; Stock trades in red

20 Jan 2022 , 09:46 AM

CRISIL Ratings Limited has revalidated the credit rating ‘CRISIL AAA/Stable’ assigned to the non-convertible debentures of Mindspace REIT of upto Rs100cr.

Also, CRISIL has reaffirmed other credit ratings assigned to Mindspace REIT.

The ratings on long-term Principal Protected Market Linked Debentures of Mindspace REIT up to Rs500cr and Rs375cr (two instruments) have been reaffirmed at CRISIL PPMLD AAA r/Stable.

The ratings on three instruments Non-Convertible Debentures of Mindspace REIT up to Rs175cr, Rs200cr, and Rs300 cr have been reaffirmed at CRISIL AAA/Stable.

For Commercial Papers of Mindspace REIT upto Rs250cr CRISIL A1+ rating has been reaffirmed.

“A prefix of ‘PP-MLD’ indicates that the instrument is a principal-protected market-linked debenture. The terms of such instruments indicate that while the issuer promises to pay back the face value/principal of the instrument, the coupon rates of these instruments will not be fixed, and could be linked to one or more external variables such as commodity prices, equity share prices, indices, or foreign exchange rates. A suffix of ‘r’ indicates investments carrying non-credit risk.

The ‘r’ suffix indicates that payments on the rated instrument have significant risks other than credit risk. The terms of the instrument specify that the payments to investors will not be fixed, and could be linked to one or more external variables such as commodity prices, equity indices, or foreign exchange rates. This could result in variability in payments, including possible material loss of principal, because of adverse movement in value of the external variables. The risk of such adverse movement in price/value is not addressed by the rating,” company shared CRISIL’s rationale in a filing on Wednesday.

At around 9.49 AM, Mindspace Business Parks REIT was trading at Rs341.35 per piece down by Rs2.4 or 0.7% from its previous closing of Rs343.75 per piece on the BSE.