Kerala

Technopark bags high CRISIL rating

The Electronics Technology Parks Kerala (Technopark) has been granted CRISIL A/Stable ranking for the second consecutive year on the strength of its financial stability and track record.

In its review dated July 24, rating agency CRISIL said the key factors that led to the high rating of the institution included steady cash flow with full occupancy in Phases I and III, diversified clientèle and long-term lease agreements. It noted that The achievement had come at a time when COVID-19 had cast a gloom across the world, resulting in a major shift to work-from-home mode.

“The current rating incorporates the positive track record of Technopark and the future expectations of revenue growth. It is significant that CRISIL has also rated Technopark’s outlook as sound, considering its financial stability and track record,” said a press note quoting Sasi P.M., CEO, IT Parks, Kerala.

The rating agency observed that the management’s pro-active approach towards property maintenance had helped retain tenant continuity and asset quality. It said the firm’s liquidity was healthy as steady revenue flow from lease rent was sufficient to meet debt obligation over the medium term. Also, it had ample liquidity of fixed deposits and bank balance to meet its daily operations and debt-servicing commitments.

The regular and systematic review mechanism has helped Technopark progress from D (Default) rating in 2014, further to BB, then to BBB, and now at A/Stable (2 notch upgrade) since last year’s review.

Set up by the government of Kerala in 1990, Technopark Trivandrum is the first technology park in the country and the flagship brand of Kerala IT. It houses over 450 companies in the IT and IT-enabled sector, with a total of 62,000 employees.

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Printable version | Oct 2, 2020 1:07:29 AM | https://www.thehindu.com/news/national/kerala/technopark-bags-high-crisil-rating/article32225885.ece

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