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ICRA upgrades the long-term rating for VBHC


Delhi,  March 6th, 2017- ICRA (Investment Information and Credit Rating Agency) has upgraded the long-term rating of VBHC Value Homes Private Limited (VBHC, previously Value and Budget Housing Corporation Private Limited) to [ICRA]BBB+ (pronounced as ICRA triple B plus)from [ICRA]BBB (pronounced as ICRA triple B)1 for the company’s Rs. 77.50 crore (enhanced from Rs 70.00 crore) fund based facilities. The outlook on the long-term rating is stable.

Mr. Jerry Rao, Chairman, VBHC, commenting on the upgrade said,” I welcome this endorsement of our strategy and execution and that in the atmosphere of negativity on Real Estate, we feel good that Affordable Housing has received a positive vote from ICRA.”

ICRA has taken a consolidated view of VBHC group including the parent company, VBHC Value Homes Private Limited and its subsidiaries VBHC Mumbai Value Homes Private Limited, VBHC Delhi Value Homes Private Limited, VBHC Delhi Projects Private Limited, VBHC Chennai Value Homes Private Limited, Ivorybrick Homes LLP and VBHC Bangalore Value Homes Private Limited due to the strong operational and financial linkages.

Key rating drivers :

  • VBHC’s experienced management and strong promoter profile
  • Diversified presence across Bengaluru, NCR, Mumbai and Chennai
  • High capitalization in the parent has resulted in improvement in leverage levels from 0.74 times as on March 2015 to 0.26 times as on September 2016- at the consolidated level
  • Satisfactory progress of projects being executed by VBHC’s subsidiaries
  • Catering to the under-served affordable housing segment leading to enhanced project marketability
  • Favorable customer response to the Kannamangala (Bengaluru), Kengeri (Bengaluru) and Palghar (Mumbai) projects of the group with healthy sales velocity
  • Bulk sale of apartments in two projects