- 19 Sep 2022
- ICICIdirect Research
PHOENIX MILLS SEES UPGRADATION OF RATINGS
PHOENIXLTD - 1787 Change: 41.90 (2.40 %)News:
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.
View:
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.
Impact:
Positive.