Credit rating agency, ICRA has downgraded the rating assigned to the Rs 7.07 billion fund based and non-fund based limits of Brigade (Q,N,C,F)* Enterprises (BEL) to LBBB- from LBBB+ earlier.

LBBB indicates the moderate-credit-quality rating assigned by ICRA in the long term. The rating revision reflects the continuing slowdown in the real estate sector that has significantly impacted BEL`s bookings and property prices of residential as well as commercial space.

This has resulted in weakening of BEL`s profitability and liquidity position and increased the refinance risks given large debt repayments due in the coming months.

The company has rescheduled its loans (which were not fully drawn) with a few banks and its ability to meet its repayment obligations will be largely contingent upon its measures like sale of commercial buildings and possible infusion of external equity in project specific SPVs.

Nevertheless, ICRA continues to derive comfort from BEL`s established position in the Bangalore real estate market, its experienced promoters and its satisfactory track record of project execution.

Recent Results

In 2008-09, BEL and its subsidiaries reported a consolidated operating income of Rs 3.91 billion and net profits of Rs 0.38 billion.

Shares of the company declined Rs 3.5, or 3.95%, to end at Rs 85.00. The total volume of shares traded was 31,068 at the BSE (Friday).