Embassy Office Parks REIT has informed the Exchange regarding Credit rating obtained on 07/05/2025
Awaiting price reaction for this filing.
Embassy Office Parks REIT has informed the exchanges about credit rating actions by CRISIL dated May 7, 2025. CRISIL assigned CRISIL AAA/Stable to proposed non-convertible debentures (NCDs) of Rs 1,400 crore and reaffirmed AAA/Stable on existing NCDs totaling over Rs 10,000 crore and Rs 1,100 crore of commercial papers (reaffirmed at CRISIL A1+). The corporate credit rating was also reaffirmed at CRISIL AAA/Stable with a Stable outlook. Underlying performance is strong: FY25 revenue grew 8% to Rs 4,367 crore, occupancy improved to 87% from 85%, and net operating income rose 10% to Rs 3,546 crore. Consolidated net debt rose to Rs 19,655 crore (from Rs 16,273 crore) due to the debt-funded acquisition of ESNP (Embassy Splendid TechZone) for ~Rs 1,200 crore and ongoing capex, with loan-to-value at 32%. The trust is planning to raise up to Rs 2,500 crore in equity to reduce debt.
Reaffirmation of the highest AAA/Stable rating signals continued strong creditworthiness and low refinancing risk for unitholders, likely keeping borrowing costs favorable. The new Rs 1,400 crore NCD issuance will provide additional debt capacity, while planned equity raise of up to Rs 2,500 crore may lead to slight unit dilution but supports long-term deleveraging.