Thursday, February 12, 2009

Parsvnath + Omaxe + Sobha - non-investment grade Fitch

Fitch has downgraded Parsvnath Developers (PDL) to BB- from A-. Fitch notes that developers' reluctance to reduce prices and customers' opting to postpone their purchases, in anticipation of a fall in prices, has led to new home sales coming to a standstill which will severly affect the prospects of the company.

Fitch has downgraded Omaxe to BB- from A-. The downgrade reflects Fitch's expectation that Omaxe's profitability and operational cash flow generation will be significantly impacted by the challenging industry environment. The rating action also relates to heightened concerns over Omaxe's short-term liquidity position, which has shown signs of weakening over recent months and has therefore created a degree of short-term refinancing risk.

Fitch has downgraded Sobha Developers to BB- from BBB+. The downgrade reflects significant erosion in the real estate sector and its expected impact on Sobha's operating performance.

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