Rating for Real Estate
Developers and Projects

Benefits of Rating

CRISIL - NAREDCO rating indicates current opinion on the relative safety of a real estate developer and / or project with regard to the risks involved regarding the builder's ability to build to agreed specifications, transfer title on time and having several benefits at the industry level.

  • Rating provides incentives to developers to maintain standards with respect to legal and construction practices. This is expected to facilitate the orderly growth of this sector presently characterised by inconsistencies and irregularities.
  • Rating is also expected to help developers mobilise funds for their projects and market them effectively.
  • For issuers, ratings can lower the cost of borrowings by aiding the process of disintermediation and mobilisation of funds directly from the capital markets.
  • Ratings can be used to present the company in a favourable light to foreign collaborators. They help individual and institutional investors to frame investment policies.
  • It helps in pricing debt since rate of interests on debt instruments are related to ratings and issuers and intermediaries can determine the price of debt offerings with the help of ratings.
  • Some banks and term lending institutions in India use CRISIL - NAREDCO ratings as cut-off points for limiting exposures. They also use them as the threshold point for fixing margin requirements, collateral, interest rates and other terms.