Rating Rationale
August 02, 2024 | Mumbai
Embassy Office Parks Reit
‘CRISIL AAA/Stable’ assigned to Non Convertible Debentures
 
Rating Action
Rs.750 Crore Non Convertible DebenturesCRISIL AAA/Stable (Assigned)
Rs.300 Crore Non Convertible DebenturesCRISIL AAA/Stable (Reaffirmed)
Rs.700 Crore Non Convertible DebenturesCRISIL AAA/Stable (Reaffirmed)
Rs.600 Crore Non Convertible DebenturesCRISIL AAA/Stable (Reaffirmed)
Rs.800 Crore Non Convertible DebenturesCRISIL AAA/Stable (Reaffirmed)
Rs.1000 Crore Non Convertible DebenturesCRISIL AAA/Stable (Reaffirmed)
Rs.3100 Crore Non Convertible DebenturesCRISIL AAA/Stable (Reaffirmed)
Rs.700 Crore Non Convertible DebenturesCRISIL AAA/Stable (Reaffirmed)
Rs.550 Crore Non Convertible DebenturesCRISIL AAA/Stable (Reaffirmed)
Corporate Credit RatingCRISIL AAA/Stable (Reaffirmed)
Rs.1100 Crore Commercial PaperCRISIL A1+ (Reaffirmed)
Note: None of the Directors on CRISIL Ratings Limited’s Board are members of rating committee and thus do not participate in discussion or assignment of any ratings. The Board of Directors also does not discuss any ratings at its meetings.
1 crore = 10 million
Refer to Annexure for Details of Instruments & Bank Facilities

Detailed Rationale

CRISIL Ratings has assigned its ‘CRISIL AAA/Stable’ rating to the Rs.750 crore proposed non-convertible debentures (NCDs) of Embassy Office Parks REIT (Embassy REIT) and has reaffirmed its ‘CRISIL AAA/Stable/CRISIL A1+’ ratings on the existing NCDs and commercial papers. Also, CRISIL Ratings has reaffirmed its ‘CRISIL AAA/Stable’ corporate credit rating on the trust.

 

Revenue of the real estate investment trust (REIT) grew by 2% on-year to Rs 1,011 crore in the first quarter of fiscal 2025 supported by steady rentals, contractual escalation and new leasing. As of June 2024, occupancy was adequate at 85%, similar to the previous year. Net operating income (NOI) increased by 3% on-year to Rs 758 crore in the first quarter of fiscal 2025 and NOI margin remained healthy at 75%. The NOI margin for commercial offices remained consistent at 85% and improved for the hospitality segment to 48% from 44% for the corresponding period of the previous fiscal with increase in occupancy.

 

Consolidated gross debt rose to Rs 18,242 crore as on June 30, 2024, from Rs 16,808 crore as on March 31, 2024, on account of debt-funded acquisition of ESNP Property Builders and Developers Pvt Ltd (ESNP) as on June 3, 2024, at enterprise value of ~Rs 1,200 crore. However, the ratings continue to reflect the trust’s satisfactory loan-to-value (LTV) ratio driven by moderate debt and healthy debt protection metrics, supported by cap on incremental borrowing. Furthermore, stable revenue and rent from the underlying assets, healthy occupancy, contractual rent escalations and geographical diversification support leverage. While the LTV has increased in the recent past, CRISIL Ratings expects prudent debt management by Embassy REIT and leverage to come down gradually. The trust is also planning to raise equity up to Rs 2,500 crore, which will be utilised towards debt reduction as well as part funding upcoming construction. Larger-than-expected debt-funded capital expenditure (capex) or acquisition, weakening the debt protection metrics, will remain a key rating sensitivity factor.

 

The rating continues to factor in exposure to refinancing risks and susceptibility to volatility in the real estate sector, resulting in fluctuations in rental rates and occupancy. The refinancing risks are expected to be mitigated by proactive refinancing strategies. Embassy REIT refinanced Rs 5,340 crore of debt at an average rate of interest of 7.9% p.a. in fiscal 2023 and Series II NCDs of Rs 1500 crore in September 2023. Recently, Series III NCDs of Rs 2600 crore were refinanced in January 2024 at the average cost of debt of 8.25%. The company is further planning to raise funds for part prepayment of term loans and refinancing of high-cost debt at the special-purpose vehicle (SPV) level. Timely refinancing of the loans will remain a key monitorable over the medium term.

Analytical Approach

CRISIL Ratings has combined the business and financial risk profiles of Embassy REIT with its underlying special purpose vehicles (SPVs) and has applied the criteria for rating entities in homogeneous groups. This is because Embassy REIT has direct control over the SPVs and will support them during exigencies. Additionally, there is minimal structural subordination of cash flow, wherein the SPVs must mandatorily distribute 90% of their net distributable cash flow (after servicing of debt) to Embassy REIT, leading to highly fungible cash flow. Also, as per the Real Estate Investment Trust (REIT) Regulations, 2014, of Securities and Exchange Board of India (SEBI), the cap on borrowing by the REIT has been defined at a consolidated level (equivalent to 49% of the value of Embassy REIT’s assets).

 

Please refer Annexure - List of Entities Consolidated, which captures the list of entities considered and their analytical treatment of consolidation.

Key Rating Drivers & Detailed Description

Strengths:

Satisfactory debt protection metrics: Consolidated gross debt rose to Rs 18242 crore as on June 30, 2024 from Rs 16,808 crore as on March 31, 2024. The increase in debt was primarily due to debt-funded acquisition of Embassy Splendid TechZone at enterprise value of ~Rs 1,200 crore. Going forward debt-funded capex or potential acquisitions may further increase the consolidated gross debt. However, in line with management articulation, the gearing levels are expected to be maintained or brought down in the medium term. Embassy REIT is also planning to raise equity up to Rs 2,500 crore, which will be utilised towards debt reduction as well as part funding the upcoming construction. A lower LTV ratio protects investors from the risk of decline in property prices and the consequent impact on refinancing.

 

Stable revenue of SPVs held by the REIT: Around 90% of the revenue comes from 14 established and high-quality commercial assets and a solar park, with stable operations and track record of at least five years of rental collection. Operating revenue of the REIT grew by 2% on-year to Rs 1,011 crore for the first quarter of fiscal 2025 with steady rentals, contractual escalation for office portfolio and new leasing. Consolidated revenue was Rs 4,035 crore in fiscal 2024, as against Rs 3,726 crore in fiscal 2023, supported by improvement in performance of the hospitality segment and contractual escalations for the office portfolio. Also, 15 lakh sq ft was added in Embassy Manyata and Embassy Business Hub in fiscal 2024. Embassy REIT renewed/entered into new agreements (including pre-commitment signing of 24 lakh sq ft) for 81 lakh sq ft in fiscal 2024 at leasing spread of 31%. The rentals have an upside potential on account of superior asset and service quality, favourable location in prime areas, healthy demand and competitive rental rates.

 

Strong tenant profile with a well-diversified portfolio: Embassy REIT owns and operates office spaces, a solar park and hotels spread out across prime areas of Bengaluru, Chennai, Pune, and National Capital Region. The group has 511 lakh sq ft of available office area with operational area of 377 lakh sq ft, under-construction area of 86 lakh sq ft and proposed development of 48 lakh sq ft. Its commercial assets have robust occupancy, averaging 85% as on June 30, 2024, with multinational occupier base of over 250 tenants across industries, of which Fortune 500 companies account for 46%.

 

Weaknesses:

Susceptibility to volatility in the real estate sector: Rental collection (key source of revenue) is susceptible to economic downturns, which constrains tenants’ business risk profiles and, therefore, occupancy and rental rates. The top 10 tenants and technology sector contributed to 36% and 32% of gross annualised rentals, respectively, as on June 30, 2024, exposing the REIT to tenant concentration risk. As on March 31, 2024, 29% of the leased area was due for renewal between fiscals 2025 and 2028. While majority of the tenants are established corporates and may continue to occupy the property, any industry shock leading to vacancies may make it difficult to find alternate lessees within stipulated time. Emergence of competing facilities in the vicinity could also cannibalise tenants or rental rates. These could adversely impact cash flow, and hence, will be a key rating sensitivity factor.

 

Exposure to refinancing risk: All NCDs issued by the trust have bullet payments at the time of redemption, exposing the REIT to the risk of refinancing. While the REIT has staggered bullet repayment timelines, active and timely treasury management remains essential. This risk is mitigated by the availability of call option in NCDs, healthy consolidated leverage and experience of the management.

 

Embassy REIT refinanced Rs 5,340 crore of debt at an average rate of interest of 7.9% p.a. in fiscal 2023 and Series II NCDs of Rs 1,500 crore in September 2023. Series III NCDs of Rs 2,600 crore were refinanced in January 2024 at average cost of debt of 8.25%. The company is further planning to raise funds for part prepayment of term loans and refinancing of high-cost debt at the SPV level. Timely refinancing of loans will remain a key monitorable over the medium term.

 

Most of the NCDs have call option prior to final maturity, which provides the trust with sufficient time to arrange funds or refinance the NCDs. Furthermore, the SPVs of the trust have the flexibility to raise lease rental discounting (LRD) loans from banks for refinancing the NCDs, thereby giving access to large pool of capital from financial institutions. New avenues of capital are also available in the form of investments from pension funds, insurance companies and foreign portfolio investors, which mitigates refinancing risk to some extent.

Liquidity: Superior

Liquidity is supported by stable cash flows from underlying assets. Debt level remains moderate for the REIT with LTV at 29.5% as on April 05, 2024 (as per external valuation as of March 2024). NCDs are non-amortising, exposing the debenture-holders to refinancing risk. However, the conditions around redemption provide the REIT with sufficient time to arrange for refinancing. Furthermore, LTV of the REIT is expected to remain well below 40%, protecting investors from the risk of decline in property prices and the consequent impact on refinancing. Embassy REIT maintains a cash balance of Rs 100-120 crore to support its day-to-day operations which is expected to be maintained at a similar level. Also, undisbursed debt is Rs 995 crore for ongoing construction activities as on June 30, 2024.

Outlook Stable

CRISIL Ratings believes Embassy REIT will continue to benefit from the quality of its underlying assets over the medium term.

Rating Sensitivity Factors

Downward Factors:

  • Decline in the value of the underlying assets or higher-than-expected incremental borrowings, resulting in CRISIL Ratings sensitised LTV ratio of 40% or above
  • Weakening of operating performance leading to lower-than-expected occupancy levels
  • Significant delay in completion and leasing of under-construction assets or acquisition of assets of lower quality affecting portfolio health 
  • Any impact on independence of REIT operations due to but not limited to change in sponsorship of the trust or ownership of the REIT manager

About the Trust

Embassy REIT is registered as an irrevocable trust under the Indian Trust Act, 1882, and as a REIT with SEBI’s REIT Regulations, 2014, as amended. Embassy REIT is sponsored by BRE Mauritius Investments (part of the Blackstone Group) and Embassy Property Development Pvt. Ltd (part of the Embassy group). It has 13 commercial assets (office parks and city-centric offices), six hotels (of which two are under construction) and a solar plant. Embassy REIT’s portfolio of assets are held through the following SPVs:

 

Indian Express Newspapers (Mumbai) Pvt. Ltd (IENMPL) owns and operates a commercial property, Express Towers, in Nariman Point, Mumbai. The property has been operational for over four decades and has a total leasable area of 4.7 lakh sq. ft, of which 96% was occupied as on March 31, 2024.

 

Quadron Business Park Pvt. Ltd (QBPL) owns and operates a commercial information technology (IT) park, Embassy Quadron, in Hinjewadi, Pune. The property has been operational since 2010 and has a total leasable area of 18.9 lakh sq. ft, of which 54% was occupied as on March 31, 2024. It also owns and operates mixed-use development, consisting of office and retail space and a hotel in north Bengaluru. The property Embassy One has a total leasable area of 2.5 lakh sq. ft, of which 82% was occupied as on March 31, 2024. The hotel, consisting of 230 rooms, run under the Four Seasons brand and had an occupancy rate of 41% for fiscal 2024.

 

Qubix Business Park Pvt. Ltd (QBPPL) owns and operates a commercial IT park, Embassy Qubix, in Hinjewadi, Pune. The company has a track record of seven years in lease rental collection. Of the total leasable area of 14.5 lakh sq. ft, 68% was leased as on March 31, 2024.

 

Earnest Towers Pvt. Ltd (ETPL) owns and operates 3.6 lakh sq. ft of First International Finance Centre (FIFC) in Bandra Kurla Complex, Mumbai, of which 100% was occupied as on March 31, 2024.

 

Vikhroli Corporate Park Pvt. Ltd (VCPPL) owns a commercial property, Embassy 247, in Vikhroli, Mumbai. It has been operational for eight years and has total leasable area of 11.9 lakh sq. ft, of which 100% was leased as on March 31, 2024.

 

Galaxy Square Pvt. Ltd (GSPL) owns and operates an IT park, Embassy Galaxy, in Sector 62, Noida. The company has a track record of seven years in lease rental collection, and 97% of the entire leasable area of 15.0 lakh sq. ft was leased as on March 31, 2024.

 

Oxygen Business Park Pvt. Ltd (OBPPL) owns and operates a commercial IT park, Embassy Oxygen, in Sector 144, Greater Noida. The property is part of the Oxygen Boulevard IT Special Economic Zone and has been operational for six years. The property has completed area of 32.2 lakh sq. ft, of which 58% was leased as on March 31, 2024.

 

Manyata Promoters Pvt. Ltd (MPPL) owns and operates Embassy Manyata Business Park, Bengaluru. The commercial complex is spread over 120 acres. The company has developed 124 lakh sq. ft, of which 87% was leased as on March 31, 2024, while around 28 lakh sq. ft is under development and around 4 lakh sq. ft is proposed to be developed. The company has recently developed a five-star and a three-star hotel with 266 rooms and 353 rooms, respectively, operated under the Hilton brand. These hotels had an occupancy rate of 59% for fiscal 2024.

 

Embassy Energy Pvt. Ltd (EEPL) owns and operates a solar project with capacity of 100 MW. The park is spread over 465 acres across multiple villages in Karnataka. It has executed power purchase agreements for over 85% of the total capacity for supplying electricity to office parks and hotels of the Embassy group in Bengaluru.

 

Umbel Properties Pvt. Ltd (UPPL) owns and operates the Hilton hotel at Embassy GolfLinks, along intermediate ring road (IRR), in Bengaluru. The hotel, consisting of 247 rooms, has been operational since 2014 and had an occupancy rate of 64% for fiscal 2024.

 

Embassy Pune Techzone Pvt. Ltd (EPTPL), owns an office park, Embassy Techzone, in Hinjewadi, Pune. Of the total area of 30 lakh sq. ft, 78% was leased as on March 31, 2024, while 24 lakh sq. ft is proposed to be developed.

 

Golflinks Software Park Pvt. Ltd (GLSP) was incorporated in 2000 for developing a software technology park, Embassy GolfLinks, on Inner Ring Road, Bengaluru. The company has developed 31 lakh sq. ft, of which 95% was leased as on March 31, 2024.

 

Vikas Telecom Pvt. Ltd (VTPL) and Sarla Infrastructure Pvt. Ltd (SIPL) own and operate ETV, Bengaluru. The commercial complex is spread over 84.05 acres consisting of 73 lakh sq. ft of completed office premises, 23 lakh sq. ft of under-construction office space and a proposed hotel of 518 keys. Of the total operational area of 73 lakh sq. ft, 96% was leased out as on March 31, 2024.

 

Embassy Construction Pvt. Ltd. (ECPL) is constructing and developing an integrated business park at Yelahanka, Hobli Bengaluru under the name of Embassy Business Hub. Embassy REIT acquired Embassy Business Hub for an enterprise value of Rs 335 crore with exclusive ownership rights to around 14 lakh sq. ft of leasable area upon full completion. Embassy Business Hub is an integrated business park in North Bengaluru and is expected to comprise total leasable area of around 21 lakh sq. ft upon full completion. The company has developed 4 lakh sq. ft, of which 92% was leased as on March 31, 2024 with ongoing development for 10 lakh sq. ft leasable area.

 

ESNP Property Builders and Developers Private Limited (ESNP) is an integrated office park situated on Pallavaram-Thoraipakkam Road in Chennai. Embassy REIT acquired ESNP for enterprise value of ~Rs 1,200 crore on June 3, 2024. Spanning approximately 26 acres, it is located in one of Chennai’s fastest growing commercial office micro-markets, OMR 2. Situated amid a strong residential catchment area, the location is close to key transportation hubs such as Chennai International Airport, Tambaram Railway Station and Chromepet Railway Station. The asset, Embassy Splendid TechZone, comprises of 50 lakh sq ft of leasable area of which 16 lakh sq ft is under development.

Key Financial Indicators (Consolidated)*

For fiscal

Unit

2024

2023

Revenue

Rs crore

4,064

3,742

Profit After Tax (PAT)

Rs crore

964

506

PAT Margin

%

23.7

13.5

Adjusted gearing

Times

0.72

0.61

Adjusted interest coverage

Times

2.84

2.84

*as per analytical adjustments made by CRISIL Ratings

Any other information:

The terms and conditions of the NCDs are mentioned below:

 

Series IV

  • Net total debt / Ebitda of the REIT group <= 5.5x
  • LTV of the REIT group <= 40%
  • LTV of the mortgaged properties of SIPL <= 49%
  • Ebitda of SIPL >= Rs 86 crore as the total indebtedness against mortgage property of SIPL exceeds Rs 400 crore

 

Series V

  • Net total debt / Ebitda of the REIT group <= 5.5x
  • LTV of the REIT group <= 40%
  • LTV of secured assets <= 49%
  •                   Total indebtedness against operational assets/Ebitda generated by operational assets <=7.0x

 

Series VI

REIT level

  • Net total debt / Ebitda of the REIT group <= 5.5x

 

Asset level

  • Security cover >=2.0x

 

Series VII

REIT level

  • Net total debt / Ebitda of the REIT group <= 5.5x
  • LTV of secured assets <= 40%

Asset level

  • Security cover >=2.0x

 

Series VIII

REIT level

  • Net total debt / Ebitda of the REIT group <= 5.5x
  • LTV of the REIT group <= 40%

Asset level

  • Security cover >=2.0x

 

Series IX

REIT level

  • Net total debt / Ebitda of the REIT group <= 5.5x
  • LTV of the REIT group <= 40%

Asset Level

  • Security cover >=2.0x

 

Series X

REIT level

  • Net total debt / Ebitda of the REIT group <= 5.5x
  • LTV of secured assets <= 40%

Asset level

  • Security cover >=2.0x

 

Proposed NCDs of Rs 300 crore

REIT level

  • Net total debt / Ebitda of the REIT group <= 5.5x
  • LTV of secured assets <= 40%

Asset level

  • Security cover >=2.0x

 

Proposed NCDs of Rs 750 crore

REIT level

  • Net total debt / Ebitda of the REIT group <= 5.5x
  • LTV of secured assets <= 40%

Asset level

  • Security cover >=2.0x

Note on complexity levels of the rated instrument:
CRISIL Ratings` complexity levels are assigned to various types of financial instruments and are included (where applicable) in the 'Annexure - Details of Instrument' in this Rating Rationale.

CRISIL Ratings will disclose complexity level for all securities - including those that are yet to be placed - based on available information. The complexity level for instruments may be updated, where required, in the rating rationale published subsequent to the issuance of the instrument when details on such features are available.

For more details on the CRISIL Ratings` complexity levels please visit www.crisilratings.com. Users may also call the Customer Service Helpdesk with queries on specific instruments.

Annexure - Details of Instrument(s)

ISIN

Name of instrument

Date of allotment

Coupon rate (%)

Maturity date

Issue size (Rs.Crore)

Complexity level

Rating assigned with outlook

INE041007068

Non-convertible debentures

07-Sep-2021

6.80%

07-Sep-2026

300

Complex

CRISIL AAA/Stable

INE041007076

Non-convertible debentures

18-Oct-2021

6.25%

18-Oct-2024

2,000

Complex

CRISIL AAA/Stable

INE041007084

Non-convertible debentures

18-Oct-2021

7.05%

18-Oct-2026

1,100

Complex

CRISIL AAA/Stable

INE041007092

Non-convertible debentures

05-Apr-2022

7.35%

05-Apr-2027

1,000

Complex

CRISIL AAA/Stable

INE041007100

Non-convertible debentures

05-Jun-2023

7.77%

05-Jun-2025

1050

Complex

CRISIL AAA/Stable

INE041007118

Non-convertible debentures

28-Aug-2023

8.10%

28-Aug-2028

500

Complex

CRISIL AAA/Stable

INE041007126

Non-convertible debentures

04-Sep-2023

8.03%

04-Sep-2025

500

Complex

CRISIL AAA/Stable

INE041007134

Non-convertible debentures

09-Jan-2024

8.17%

05-Sep-2025

1000

Simple

CRISIL AAA/Stable

NA

Non-convertible debentures*

NA

NA

NA

300

Simple

CRISIL AAA/Stable

NA

Non-convertible debentures*

NA

NA

NA

750

Simple

CRISIL AAA/Stable

INE041014023

Commercial paper

08-Jan-2024

8.30%

07-Jan-2025

750

Simple

CRISIL A1+

NA

Commercial paper

NA

NA

7-365

Days

100

Simple

CRISIL A1+

NA

Commercial paper

NA

NA

7-365

Days

250

Simple

CRISIL A1+

*Yet to be issued

Annexure - List of Entities Consolidated

Names of entities consolidated

Extent of consolidation

Rationale for consolidation

IENMPL

Full

100% subsidiary

QBPL

Full

100% subsidiary

QBPPL

Full

100% subsidiary

ETPL

Full

100% subsidiary

VCPPL

Full

100% subsidiary

GSPL

Full

100% subsidiary

OBPPL

Full

100% subsidiary

MPPL

Full

100% subsidiary

EEPL

Full

100% subsidiary

UPPL

Full

100% subsidiary

EPTPL

Full

100% subsidiary

VTPL

Full

100% subsidiary

SIPL

Full

100% subsidiary

ECPL

Full

100% subsidiary

ESNP

Full

100% subsidiary

GLSP

Partial

Investment entity consolidated to the extent of 50%
Annexure - Rating History for last 3 Years
  Current 2024 (History) 2023  2022  2021  Start of 2021
Instrument Type Outstanding Amount Rating Date Rating Date Rating Date Rating Date Rating Rating
Corporate Credit Rating LT 0.0 CRISIL AAA/Stable 28-05-24 CRISIL AAA/Stable 29-12-23 CRISIL AAA/Stable 12-12-22 CRISIL AAA/Stable   -- --
      -- 26-04-24 CRISIL AAA/Stable 19-12-23 CRISIL AAA/Stable 06-12-22 CCR AAA/Stable   -- --
      --   -- 05-12-23 CRISIL AAA/Stable 17-03-22 CCR AAA/Stable   -- --
      --   -- 13-07-23 CRISIL AAA/Stable 20-01-22 CCR AAA/Stable   -- --
      --   -- 26-05-23 CRISIL AAA/Stable   --   -- --
      --   -- 06-04-23 CRISIL AAA/Stable   --   -- --
      --   -- 28-02-23 CRISIL AAA/Stable   --   -- --
Commercial Paper ST 1100.0 CRISIL A1+ 28-05-24 CRISIL A1+ 29-12-23 CRISIL A1+   --   -- --
      -- 26-04-24 CRISIL A1+ 19-12-23 CRISIL A1+   --   -- --
Non Convertible Debentures LT 8500.0 CRISIL AAA/Stable 28-05-24 CRISIL AAA/Stable 29-12-23 CRISIL AAA/Stable 12-12-22 CRISIL AAA/Stable 16-11-21 CRISIL AAA/Stable CRISIL AAA/Stable
      -- 26-04-24 CRISIL AAA/Stable 19-12-23 CRISIL AAA/Stable 06-12-22 CRISIL AAA/Stable 05-10-21 CRISIL AAA/Stable --
      --   -- 05-12-23 CRISIL AAA/Stable 17-03-22 CRISIL AAA/Stable 24-08-21 CRISIL AAA/Stable --
      --   -- 13-07-23 CRISIL AAA/Stable 20-01-22 CRISIL AAA/Stable 17-08-21 CRISIL AAA/Stable --
      --   -- 26-05-23 CRISIL AAA/Stable   -- 15-06-21 CRISIL AAA/Stable --
      --   -- 06-04-23 CRISIL AAA/Stable   -- 19-01-21 CRISIL AAA/Stable --
      --   -- 28-02-23 CRISIL AAA/Stable   -- 11-01-21 CRISIL AAA/Stable,Provisional CRISIL AAA/Stable --
      --   --   --   -- 08-01-21 CRISIL AAA/Stable --
All amounts are in Rs.Cr.

  

Criteria Details
Links to related criteria
CRISILs rating criteria for REITs and InVITs
CRISILs criteria for rating debt backed by lease rentals of commercial real estate properties
Criteria for rating entities belonging to homogenous groups
CRISILs Criteria for rating short term debt

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CRISIL Ratings uses the prefix 'PP-MLD' for the ratings of principal-protected market-linked debentures (PPMLD) with effect from November 1, 2011, to comply with the SEBI circular, "Guidelines for Issue and Listing of Structured Products/Market Linked Debentures". The revision in rating symbols for PPMLDs should not be construed as a change in the rating of the subject instrument. For details on CRISIL Ratings' use of 'PP-MLD' please refer to the notes to Rating scale for Debt Instruments and Structured Finance Instruments at the following link: https://www.crisilratings.com/en/home/our-business/ratings/credit-ratings-scale.html