The JCR-VIS Credit Rating Company Ltd (JCR-VIS) has assigned preliminary medium to long-term rating A (Single A) to the proposed Sukuks of Rs 2 billion (with additional green shoe option of Rs 1 billion) of Eden Housing Limited (EHL) with 'Stable' outlook. In addition, the JCR-VIS is assigning Real Estate Developer Grading of PE1- (PE One Minus) to the company.
According to a press release, the preliminary Sukuk rating will be converted into final rating on review of the signed legal documents incorporating the structure of the transaction.
The assigned ratings take into account the group's success in building the brand name of 'Eden' for itself as a real estate developer, which is unique in the local industry, carrying with it a history of successful projects largely targeted towards the housing sector.
The preservation of the brand equity going forward, now that the group operations are being run under three different companies all using the Eden slogan, will be a core concern. EHL's own operations are run on corporate lines with professionals employed in all critical functions of the business. Extensive management information systems are in place with capabilities of project planning and project monitoring as well as the tracking of collections against receivables.-PR