Embassy Office Parks REIT has informed the Exchange regarding Credit rating Review on 07/05/2025
Awaiting price reaction for this filing.
CRISIL has reaffirmed its highest safety rating of CRISIL AAA/Stable on Embassy REIT's existing non-convertible debentures (NCDs) and corporate credit rating, while also reaffirming CRISIL A1+ on its Rs 1,100 crore commercial paper program. Additionally, CRISIL assigned a fresh CRISIL AAA/Stable rating to proposed Rs 1,400 crore NCDs to be issued by the REIT. The positive rating action is supported by 8% revenue growth to Rs 4,367 crore in FY25, occupancy improvement to 87% from 85%, and a 10% rise in net operating income to Rs 3,546 crore. Net debt increased to Rs 19,655 crore (from Rs 16,273 crore) due to the Rs 1,200 crore ESNP acquisition and ongoing capex, but loan-to-value remains comfortable at 32%. Embassy REIT plans to raise up to Rs 2,500 crore in equity to reduce debt, and refinanced Rs 6,300 crore at an average rate of 7.98% during FY25.
The reaffirmation of the top-tier AAA rating signals strong credit quality and low default risk for debenture holders, supporting investor confidence. The new Rs 1,400 crore NCD rating provides the REIT with fresh fundraising headroom at favorable rates, while the planned equity raise of up to Rs 2,500 crore should help reduce leverage over time, which is positive for unit holders.