Moody's may lower Indiabulls

Moody's Investors Service said it placed the B1 corporate family rating of Indiabulls Real Estate Ltd. on review for downgrade.

Moody's also said it placed the B1 senior unsecured debt rating of the dollar-denominated bonds issued by Indiabulls' wholly owned subsidiary Century Ltd. on review for downgrade.

The review reflects the weakening of the company's financial profile following its recently completed full acquisition of Indiabulls Properties Investment Trust, the agency said.

With the acquisition, the company will benefit from annuity revenue from its quality buildings, which partially offsets the inherent volatility in the property development business, Moody's said.

Moody's said its review will focus on whether the company can monetize a minority stake of the its property development business to repay the outstanding debt, the agency said.

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