CRISIL Top Rating a Valuable Accolade for Technopark
Thiruvananthapuram: In yet another feather in Technopark’s cap, global analytical company CRISIL has upgraded its rating of Technopark Thiruvananthapuram to ‘CRISIL A’ based on the latest review in June 2019. CRISIL is the leading agile and innovative global analytics company with a mission to make markets function better.
“The rating continues to reflect the firm’s steady cash flow with healthy occupancy and diversified clientele, and healthy financial risk profile. These strengths are partially offset by exposure to risks related to vacancy, fluctuations in interest rate, and project implementation due to continuous development,” said a report by the S&P company following the announcement of the rating.
It is the first time Technopark has received ‘A/Stable’ rating in the last 10 years of ratings done by CRISIL. From D rating in 2014-15, Technopark has gradually moved to B, then to BBB and finally now to A. The upgrade reflects the improvement in Technopark’s cash flow due to leasing of additional commercial space across its Phases I, III and Technocity, leading to 15 per cent growth in operating income in the financial year 2018-19.
The upgrade also factors in significant strengthening of liquidity in the form of fixed deposits (FDs) and reduction in project implementation risk due to the near completion of construction of phase IV of the IT Park, the CRISIL report added.
“The A rating is expected to attract more investments and build credibility among financial institutions to support the Park’s strategic expansion plans,” said Jayanthi L, Chief Finance Officer (CFO), Technopark hinting at the possibility of more foreign investments in the future.
At present, more than 430 companies, including five international companies function at Technopark, employing over 60,000 people. In the last couple of years, the IT Park witnessed big-ticket investments, including that of Japanese automotive giant Nissan Motor Corporation, American tax preparation giant H&R Block, Canadian land registry services firm Teranet and American real estate firm Taurus Investment Holdings. According to experts, besides an increased visibility, Technopark has also improved its cash flow making the Park a stable and potential off-shore development site for international companies.
“CRISIL A rating is truly a defining moment for Technopark as it reflects the progressive track of financial stability of the organisation in total. It is a recognition of the measures adhered to over the years in achieving this milestone, which will help us go a long way in attracting more investor focus and credibility among the industry,” said Hrishikesh Nair, CEO, IT Parks Kerala.
“CRISIL believes Technopark will continue to benefit from steady cash flow because of its diversified clientele, healthy debt protection metrics and liquidity,” said the report.