Fitch lowers Puravankara

Fitch Ratings said it downgraded Puravankara Projects Ltd.'s national long-term issuer rating and its Rs. 5 billion of long-term debt to BBB(ind) from A-(ind) and placed the ratings on Rating Watch negative.

The downgrade reflects the difficult housing environment, negative trends in Puravankara's operating performance and Fitch's expectation that the housing downturn will be even more challenging than previously anticipated in 2009 and that credit metrics will further deteriorate.

The agency said the downgrade also considers Puravankara's liquidity risk, as the company requires refinancing to service its existing debt obligations. The timeliness of servicing payments due in the coming months will be a key factor to resolving the Rating Watch negative, Fitch added.

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