Ind-Ra upgrades credit rating for Arvind SmartSpaces; stock zooms ~6%

25 Feb 2022 , 09:56 AM

India Ratings and Research (Ind-Ra) has upgraded Arvind SmartSpaces Limited’s (ASSL) Long-Term Issuer Rating to ‘IND A’ from ‘IND A-’, and has given a positive outlook for debt facilities of the company.

Ind-Ra has assigned an ‘IND A’ rating to the company’s proposed term loan facility worth Rs300 crore, and Rs100 crore.

The rating agency has withdrawn the rating/outlook from the company’s term loan facility worth Rs80 crore.

The upgrade reflects an improvement in ASSL’s credit metrics during FY21-9MFY22, along with strong operating performance (pre-sales and collection). The upgrade also reflects Ind-Ra’s expectation that ASSL’s credit metrics will remain comfortable over the medium term through limited reliance on debt to fund its future projects.

Arvind Smartspaces gained 6% in today’s trade at Rs194.75 as against its previous closing price of Rs183.75. The scrip touched an intraday high and low of Rs194.75 and Rs183 respectively.