CRISIL upholds Akshaya Homes DA3+ rating.
BANKING AND CREDIT NEWS-26 July 2010-CRISIL upholds Akshaya Homes DA3+ rating(C)1994-2010 M2 COMMUNICATIONS http://www.m2.com
26 July 2010 - Indian rating agency CRISIL said it reaffirmed its developer rating on local real estate developer Akshaya Homes (AH) at DA3+.
The rating indicates that the developer's ability to execute real estate projects as per specified quality levels within the stipulated time schedule, and its ability to transfer a clean title, is "good". For arriving at the rating, CRISIL has combined the business and financial profiles of AH, Akshaya Pvt Ltd (APL) and AL Homes (ALH). This is because AH, APL and ALH, together referred to as the Akshaya group, are all engaged in real estate development, are under a common management and share strategies and resources.
CRISIL's rating on AH reflects the benefits that the Akshaya group derives from its promoters' vast experience in the real estate business and the group's sound development strategies and standardised workflow processes. These rating strengths are partially offset by the group's weak financial risk profile, limited track record in the development of commercial and large residential projects, delays in project completion and segmental concentration in the revenue profile.
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