Technopark achieves A+/Stable in CRISIL ratings

Amid the gloom of the COVID-19 pandemic, the Electronics Technology Parks Kerala (Technopark) has something to cheer for.

It has achieved CRISIL’s A+/Stable rating, as per the latest review on July 20. The new rating is after the earlier rating of ‘CRISIL A/Stable’ since the last two consecutive years. The standalone business and financial risk profiles of Technopark were considered by the rating agency CRISIL.

This is the highest rating the Technopark has achieved in the past 10 years of being considered by CRISIL for the rating. From D (Default) rating in 2014, it moved upward to BB, then to BBB and to A/Stable during 2019 and 2020.

The latest rating is a recognition for Technopark’s strengths that include steady cash flow with full occupancy in Phases I and III, diversified clientele, and long-term lease agreements.

“In 2014, we had availed ourselves term loans for land acquisition for Technocity and when Phase 3 construction was going on. For a time, we had cash flow difficulties. The situation slowly improved, with improvement in occupancy and steady slow of rental income, which allowed us to restructure loans. Though a moratorium was announced in loan repayment after the COVID-19 outbreak, we did not avail ourselves of it and repaid loans through an escrow mechanism. In addition, we made pre-payment of ₹70 crore loans. The CRISIL looks at cash flow, regularity of loan repayment, occupancy and future growth, in all of which we scored high,” said L. Jayanthi, Chief Financial Officer (CFO), Technopark.

Setbacks taken care of

Though there was some surrender of property by occupants within the Technopark due to the after-effects of the pandemic in the past year, these were filled immediately as there is a long queue of companies awaiting space.

“Despite the adverse conditions that COVID-19 inflicted across the globe, Technopark has invariably maintained the strength of its financial stability and track record to win this achievement. Amidst this ubiquitous pandemic, Technopark added around 40 companies to its tenant list, revealing the vigour and vastness of the infrastructure that it offers. Technopark’s continuous improvement in financial position coupled with infrastructure development, operational efficiency, and strong plans have helped in achieving this goal,” said John M. Thomas, CEO, Technopark.

Technopark had completely leased out IT office spaces in Phases I & III. The entire land parcel in Phase I and II have been leased out on long-term lease to IT companies/ IT co-developers.

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Printable version | Sep 22, 2021 9:24:16 PM |

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