By Vinay Betala

India Ratings and Research (Ind-Ra) has withdrawn Healthcare Global Enterprises Limited’s (HCG) Long-Term Issuer Rating of ‘IND BBB (ISSUER NOT COOPERATING)’. The Outlook was Positive. Instrument-wise rating actions are given below:

Instrument Type

Date of Issuance

Coupon Rate (%)

Maturity Date

Size of Issue (million)

Rating/Outlook

Rating Action

Term loans

-

-

-

INR1,346.2

WD

Withdrawn

Fund-based working capital limits

-

-

-

INR550

WD

Withdrawn

Non-fund-based working capital limits

-

-

-

INR103.8

WD

Withdrawn (paid in full)

Ind-Ra is no longer required to maintain ratings on the term loans and fund-based working capital limits, based on the no-objection certificate received from the lending bank. This is consistent with Securities and Exchange Board of India’s circular dated 31 March 2017 for credit rating agencies. The ratings on the non-fund-based working capital limits have been withdrawn as the limits have been repaid in full. Consequently, the Long-Term Issuer Rating has been withdrawn.

COMPANY PROFILE

HCG is an oncology-focused healthcare chain founded in 1989 by Dr. BS Ajai Kumar as Bangalore Institute of Oncology. HCG was listed on the Bombay Stock Exchange and National Stock Exchange post an initial public offering in March 2016. As of December 2016, it had 17 comprehensive cancer centres (offering radiation, medical oncology and surgical treatments), three diagnostic centres and one day care chemotherapy centre (offering medical oncology services), held either directly or through subsidiaries. HCG also operates six fertility centres under the Milann brand in Bengaluru and Delhi, and two multi-specialty hospitals in Ahmedabad and Bhavnagar.



RATING HISTORY

Instrument Type

Current Rating/Outlook

Historical Rating/Outlook

Rating Type

Outstanding Limits (million)

Rating/Outlook

27 March 2017      

28 August 2015

24 January 2014

Issuer rating

Long-term

-

WD

IND BBB(ISSUER NOT COOPERATING)/Positive

IND BBB/Stable

IND BBB/Stable

Term loans

Long-term

INR1,346.2

WD

IND BBB(ISSUER NOT COOPERATING)/Positive

IND BBB/Stable

IND BBB

Fund-based working capital limits

Long-term/Short-term

INR550

WD

IND BBB(ISSUER NOT COOPERATING)/Positive/IND A3+(ISSUER NOT COOPERATING)

IND BBB/Stable/IND A3+

IND BBB/IND A3+

Non-fund-based working capital limits

Short-term

INR103.8

WD

IND A3+(ISSUER NOT COOPERATING)

IND A3+

IND A3+


COMPLEXITY LEVEL OF INSTRUMENTS

For details on complexity level of the instruments please visit https://www.indiaratings.co.in/complexity-indicators.

SOLICITATION DISCLOSURES

Additional information is available at www.indiaratings.co.in. The ratings above were solicited by, or on behalf of, the issuer, and therefore, India Ratings has been compensated for the provision of the ratings. 

Ratings are not a recommendation or suggestion, directly or indirectly, to you or any other person, to buy, sell, make or hold any investment, loan or security or to undertake any investment strategy with respect to any investment, loan or security or any issuer.

ABOUT INDIA RATINGS AND RESEARCH

India Ratings and Research (Ind-Ra) is India's most respected credit rating agency committed to providing India's credit markets accurate, timely and prospective credit opinions. Built on a foundation of independent thinking, rigorous analytics, and an open and balanced approach towards credit research, Ind-Ra has grown rapidly during the past decade, gaining significant market presence in India's fixed income market. 

Ind-Ra currently maintains coverage of corporate issuers, financial institutions (including banks and insurance companies), finance and leasing companies, managed funds, urban local bodies, structured finance and project finance companies. 

Headquartered in Mumbai, Ind-Ra has six branch offices located in Ahmedabad, Bengaluru, Chennai, Delhi, Hyderabad and Kolkata. Ind-Ra is recognised by the Securities and Exchange Board of India, the Reserve Bank of India and National Housing Bank. 

India Ratings is a 100% owned subsidiary of the Fitch Group.

For more information, visit www.indiaratings.co.in.

DISCLAIMER

ALL CREDIT RATINGS ASSIGNED BY INDIA RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTPS://WWW.INDIARATINGS.CO.IN/RATING-DEFINITIONS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE WWW.INDIARATINGS.CO.IN. PUBLISHED RATINGS, CRITERIA, AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. INDIA RATINGS’ CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE, AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE CODE OF CONDUCT SECTION OF THIS SITE.

Applicable Criteria

Analyst Names

  • Primary Analyst

    Vinay Betala

    Associate Director
    India Ratings and Research Pvt Ltd Harmony Square 3rd Floor, Door No. 48 & 50 Prakasam Street T Nagar Chennai 600 017
    +91 44 43401719

    Media Relation

    Mihir Mukherjee

    Manager Corporate Communications and Investor Relations
    +91 22 40356121