MUMBAI: India Ratings and Research (Ind-Ra) has affirmed Mahindra World City Developers’ (MWCDL) Long-Term Issuer Rating at ‘IND AA-’ with a Stable Outlook.

The ratings reflect MWCDL's strong operational and strategic linkages with its parent Mahindra Lifespace Developers (MLDL). The parent company MLDL owns an 89% stake in MWCDL and there are two common directors on the board of MLDL and MWCDL, the ratings agency said in a statement.

Out of total 1,145 acres of saleable area in Mahindra World City, Chennai (MWCC), it has already leased 1,104 acres to the customers. As of September 2018, MWCDL developed 100% of the gross area and cumulatively leased around 96% of the net leasable industrial area and thus faces a low demand risk.

It has leased 100% of the special economic zone area of 425 acres, 97% of the domestic tariff area of 422 acres and 91% of the residential area of 298 acres.

MWCDL has utilised an average of 84% of its fund-based limits during the 12 months ended November 2018. The company’s cash flow from operations turned positive at Rs 38 crore in 2017-18 (FY17: negative Rs 15.1 crore), driven by favourable working capital movements. Also, it had cash & cash equivalents of Rs 15.2 crore at the end-FY18, India Ratings added.