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ICRA downgrades credit ratings of Fortis Healthcare, 4 arms

Press Trust of India  |  New Delhi 

Credit ratings of Healthcare and its four arms have been downgraded by following disclosure by the about transfer of considerable funds to third parties, which were later classified as promoter entities.

The four subsidiaries which have been downgraded by are Ltd, and Research Centre Ltd, and C-Doc Healthcare Ltd, Healthcare said in a BSE filing.

As per the filing, downgraded ratings on Fortis' total debt of Rs 1,170 crore under various instruments while keeping them on watch with negative implications.

The material event, said for such a downgrade was the "recent disclosure by Healthcare Ltd (FHL) indicating that considerable funds were transferred to third parties, which were later classified as promoter entities and the current outstanding amount towards such entities is Rs 473 crore."

According to ICRA, the long term rating for Rs 250 crore non-convertible debenture programme, Rs 105 crore fund-based limits, and Rs 195 crore term loans has been revised from [ICRA]A+ to [ICRA]A-.

Further, the short-term rating for Rs 600 crore commercial paper programme and Rs 20 crore non-fund-based facilities has been revised from [ICRA]A1+ to [ICRA]A2+, it added.

"The ratings continue to be on watch with negative implications," said.

As per the ratings agency, its "action takes into account the disclosure about the advances extended by FHL to related parties which in ICRA's views has a significant impact on FHL's credit and liquidity profile".

also said inordinate delays in releasing results for second quarter of FY2018 constrained its ability to monitor the performance of Healthcare.

Following the action on Healthcare, also downgraded Ltd's (FHL) long-term rating for Rs 417.8 crore term loan and Rs 235 crore fund-based limits to [ICRA]A-(SO) structured obligation from [ICRA]A+(SO).

Moreover, the short-term rating of FHL's Rs 97.2 crore non-fund-based facilities has been revised from [ICRA]A1+(SO) to [ICRA]A2+(SO), the ratings agency added.

Likewise, also downgraded ratings on Escorts Heart Institute and Research Centre Ltd's long-term rating for Rs 78 crore term loan and Rs 20 crore fund-based limits along with short-term rating for Rs 5 crore non-fund-based facilities.

Similarly, C Doc Healthcare Ltd's long-term rating for Rs 10.31 crore fund-based limits was also downgraded.

also downgraded Hiranandani Healthcare Pvt Ltd's long-term rating for Rs 42.98 crore term loan and Rs 3 crore fund-based limits.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, February 13 2018. 21:15 IST
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