Credit Analysis & Research (CARE) reaffirmed 'BBB+(Is)' to Ashiana Housing's issuer rating.

The rating continues to take into account comfortable financial risk profile along with continued operating performance during FY13 (refers to the period April 01 to March 31) and considerable progress achieved in ongoing projects including booking status.

The rating continues to draw strength from the promoter's experience, demonstrated track record of the company in executing real estate projects and comfortable financial profile of the company characterized by consistent growth in earnings, high profitability and low gearing.

The rating, however, is constrained due to presence of majority of the projects in Tier-II and III cities, high competition and inherent risk associated with real estate sector. 

Going forward, Ashiana Housing's (AHL) ability to maintain healthy capital structure, maintain its sales momentum, and the performance of the real estate industry would be the key rating sensitivities. 

Shares of the company gained Rs 2.55, or 2.67%, to settle at Rs 98. The total volume of shares traded was 1,817 at the BSE (Thursday).