Aster DM Quality Care Credit Rating Upgraded by ICRA; Long-Term Facilities Raised to ICRA AA (Stable)

What Happened ?

key details

Credit Rating Revision:

• Long-term fund-based term loan upgraded to ICRA AA (Stable).
• Rating Watch with Positive Implications has been removed.
• Stable outlook has been assigned.
• Enhancement in the rated amount from ₹382 crore to ₹1,607 crore.

Short-Term Facilities:

• Fund-based working capital facilities of ₹190 crore reaffirmed at ICRA A1+.
• Non-fund based working capital facilities of ₹30 crore reaffirmed at ICRA A1+.

Rated Banking Facilities:

Long-Term Facilities (ICRA AA – Stable)

• Total long-term facilities rated: ₹1,607 crore
• Major lending institutions include:
  • Deutsche Bank AG
  • Federal Bank
  • Axis Bank
  • HDFC Bank
  • Bajaj Finserv

Short-Term Facilities (ICRA A1+)

• Total short-term facilities rated: ₹220.17 crore, comprising:
  • Working capital fund-based facilities
  • Bank guarantees
  • Unallocated limits

Regulatory Disclosure:

• Disclosure has been made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.
• The detailed ICRA rating letter has been enclosed with the stock exchange filing for investor reference.

Note:

• ICRA stated that the assigned ratings are subject to periodic surveillance and may be reviewed based on new information, changes in borrowing limits or changes in the company’s credit profile.

Risk Analysis

Summary:

• Although the rating upgrade strengthens Aster DM Quality Care’s credit standing, future ratings remain dependent on financial performance, leverage, liquidity, debt servicing capability and overall business conditions.

Key Risks:

• Credit ratings are subject to regular surveillance by ICRA.
• Significant deterioration in operating performance or cash flows could affect future ratings.
• Material increase in leverage or debt obligations may influence future rating actions.
• Changes in business fundamentals or financing profile could trigger a review.

Worst Case:

• A deterioration in the company’s financial metrics or repayment profile could result in a future rating downgrade, increasing borrowing costs and reducing financing flexibility.

Risk Level: Low

Company Commentary

• ICRA has upgraded the company’s long-term term loan rating to ICRA AA (Stable).
• The previous Rating Watch with Positive Implications has been removed.
• Short-term fund-based and non-fund based working capital facilities continue to be rated ICRA A1+.
• A copy of the ICRA credit rating letter has been enclosed with the stock exchange filing.