- 19 Sep 2022
- ICICIdirect Research
Phoenix Mills sees upgradation of ratingsPHOENIXLTD - 1297 Change: -44.00 (-3.28 %)
The Phoenix Mills rating for term loans has been upgraded to ‘IND AA-’ (outlook stable) by India Ratings while rating for short/working capital loan got upgraded to IND A1+. As per the agency, the upgrade reflects a strong recovery in the group’s operating performance across retail and hotel portfolio in FY22 and Q1FY23.
The operating metrics are likely to remain strong over the near term, given the strong consumption (120%+ above pre-pandemic levels) and occupancy/average room rate (ARR) trends witnessed across Phoenix malls and hotels, respectively, in April-July 2022. Furthermore, over the last few years, the company has raised equity through a QIP issuance and stake dilution in some of its assets, leading to a significant improvement in its credit metrics, robust liquidity, and the availability of growth capital.