Fitch assigns B+ to Lodha notes

Fitch Ratings said it assigned Lodha Developers Private Ltd.’s dollar-denominated notes an expected rating of B+(EXP) and recovery rating of RR4.

The notes will be issued by Lodha Developers International (Mauritius) Ltd. and guaranteed by Lodha.

Lodha Mauritius is a wholly owned subsidiary of Lodha, and its proposed notes will be unconditionally and irrevocably guaranteed by Lodha and its key subsidiaries.

The notes will rank pari passu with existing and future senior unsecured indebtedness of Lodha and its key subsidiaries. However, as of the date of the indenture, only group companies that together account for 40% of consolidated EBITDA would extend guarantees to the notes, while the remaining material subsidiaries (defined in the indenture as those which account for at least 5% of consolidated EBITDA or 5% of consolidated net worth each) as of this date will be added on as guarantors within a span of six months.

Subsidiaries that are not material as of the indenture date will be added on as guarantors as and when they pass the materiality test in future, the agency said.

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