Fitch Ratings has assigned India-based Indiabulls Real Estate (IBREL) a long-term foreign currency issuer default rating (IDR) of 'B+'. The outlook is stable. The agency has also assigned IBREL's proposed US dollar denominated guaranteed notes an expected rating of 'B+(EXP)' and Recovery Rating of 'RR4'.

The proposed senior notes will be issued by Jersey-based Century, a wholly owned subsidiary of IBREL, and will be unconditionally and irrevocably guaranteed by IBREL and its key subsidiaries. The notes will rank pari passu with IBREL's and the other guarantors' existing and future senior unsecured indebtedness. The notes are therefore rated at the same level as IBREL's rating of 'B+'.

Fitch has taken a consolidated view of IBREL because of the strategic and operational linkages among its operating subsidiaries. Only IBREL's key subsidiaries have extended guarantees to the proposed notes. If the operations of any non-guarantor restricted subsidiaries improve to account for 5% or more of IBREL's consolidated EBITDA, they will be required to extend guarantees to the notes in the future. In addition, Fitch expects that, if required, IBREL would be able to access cash or assets of the non-guarantor restricted subsidiaries, which have minimal debt. There are also cross-default provisions covering debt of over USD 15 million for the non-guarantor restricted subsidiaries.

Shares of the company gained Rs 1.95, or 2.94%, to trade at Rs 68.35. The total volume of shares traded was 431,933 at the BSE (10.10 a.m., Thursday).