Crisil upgrades credit rating outlook of Fortis Healthcare

Crisil has upgraded the credit rating outlook of Fortis Healthcare basis sustained improvement in the business risk profile of the company.

It has upgraded the credit rating on long-term bank facilities for Fortis Healthcare Limited (FHL) to 'AA / Stable outlook' from the earlier 'AA- / Positive outlook', the company said in a release.

The short- term rating has also been reaffirmed at 'Crisil A1+'. This rating is considered to have a high degree of safety regarding timely payment of financial obligations.

"Crisil upgraded long-term credit rating to AA basis sustained improvement in the business risk profile of FHL driven by bed expansions, steady occupancies, better surgical mix, improved average revenue per occupied bed (ARPOB) metrics, and increasing international patient revenues, which are also leading to healthy operating profitability," it said.

It further said consolidated operating EBITDA of FHL improved to about Rs 1,163 crore in 2022-23 from Rs 1,096 crore in FY22 and net debt (including lease liabilities) reduced to around Rs 644 crore.

Besides, FHL's financial risk profile remains comfortable, supported by good cash generation, and healthy debt metrics, even as it is expected to pursue with its organic and inorganic growth plans, the release said.

Ashutosh Raghuvanshi, MD and CEO, Fortis Healthcare said, "We are looking at a very fast-growing trajectory in the next few years with increased infrastructure expansion, investment in new talent and medical equipment and technology." The company operates 27 healthcare facilities , including JVs and O&M facilities. Its network comprises approximately 4,300 operational beds and 400 diagnostics centres.

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