An independent Indian and professional investment information and credit rating agency (ICRA) has upgraded Fortis Healthcares long-term credit rating.
The decision has come after the healthcare establishment has repaid the overdue debt obligations and cured the delays in debt servicing in May 2018.
The long-term rating of Fortis Healthcare Ltd for Rs 250 crore non-convertible debenture programme, Rs 105 crore fund-based limits, and Rs 195 crore term loans has been upgraded by ICRA from C to B plus, Fortis Healthcare said in a filing to BSE.
It is to be noted that C rating states a very high risk of default pertinent to timely servicing of financial obligations, while securities rated B-plus are relatively safer.
The ratings have been placed on watch with developing implications, the filing said.
Giving the rationale for the upgrade, ICRA said: “The ratings have been upgraded as the company has repaid the overdue debt obligations and has cured the delays in debt servicing in May 2018.”
“The conclusion of the deal will be a credit positive as it will result in infusion of Rs 4,000 crore equity into the company,” ICRA said.