Credit Rating Assignment
SAMHI Hotels Subsidiaries Receive CARE Rating Actions; Key Long-Term Facilities Assigned and Reaffirmed
NSE
SAMHI
BSE
543984
SAMHI Hotels Limited informed the stock exchanges that CARE Ratings Limited has assigned and reaffirmed credit ratings for the bank facilities of two subsidiaries. The actions include a fresh CARE A+; Stable rating assignment, reaffirmation of existing ratings, and withdrawal of an earlier rating following receipt of a No-Dues Certificate from the previous lender.
PRICE-SENSITIVE TRIGGER
Event: CARE Ratings assigns, reaffirms, and withdraws credit ratings for subsidiary bank facilities.
Type: Credit Rating Update
Impact: Neutral
Immediate Effect: The rating actions reaffirm the credit quality of the company’s subsidiary borrowings while reflecting revised financing arrangements for certain facilities.
Metrics:
Key Financial Metrics:
- SAMHI Hotels (Ahmedabad) Private Limited
- Long-Term Bank Facilities: ₹453.10 crore
- Rating: CARE A+; Stable
- Rating Action: Assigned
- Duet India Hotels (Hyderabad) Private Limited
- Long-Term Bank Facilities: ₹178.60 crore (enhanced from ₹48.60 crore)
- Rating: CARE A+; Stable
- Rating Action: Reaffirmed
- Duet India Hotels (Hyderabad) Private Limited
- Short-Term Bank Facilities: ₹16.00 crore
- Rating: CARE A1
- Rating Action: Reaffirmed
Highlight:
- CARE assigned a CARE A+; Stable rating to ₹453.10 crore of long-term bank facilities for SAMHI Hotels (Ahmedabad) Private Limited.
What Happened ?
SAMHI Hotels Limited disclosed under Regulation 30 of the SEBI (LODR) Regulations that CARE Ratings Limited has completed rating actions for the banking facilities of certain subsidiaries.
The actions include a fresh long-term rating assignment, reaffirmation of existing long-term and short-term ratings, and withdrawal of a previous rating linked to an earlier lending arrangement.
key details
- SAMHI Hotels (Ahmedabad) Private Limited
- Previous long-term bank facility rating was withdrawn after receipt of a No-Dues Certificate (NDC) from the previous lender.
- CARE assigned CARE A+; Stable to new long-term bank facilities of ₹453.10 crore.
- Duet India Hotels (Hyderabad) Private Limited
- Long-term bank facilities of ₹178.60 crore were reaffirmed at CARE A+; Stable.
- The sanctioned amount has been enhanced from ₹48.60 crore.
- Short-term bank facilities of ₹16.00 crore were reaffirmed at CARE A1.
Note:
- The withdrawal of the earlier rating for SAMHI Hotels (Ahmedabad) Private Limited was administrative in nature and followed closure of the previous lending arrangement after obtaining a No-Dues Certificate.
Risk Analysis
Summary:
- The latest rating actions indicate continued credit stability for the subsidiaries. However, future ratings will remain dependent on operating performance, debt servicing capability, occupancy trends, and overall financial health of the hotel assets.
Key Risks:
- Any deterioration in operating performance or cash flows could affect future ratings.
- Higher leverage or weaker debt servicing metrics may lead to rating pressure.
- The hospitality sector remains sensitive to travel demand and economic conditions.
Worst Case:
- A sustained decline in hotel occupancy, profitability, or liquidity could result in negative rating actions, increasing borrowing costs and reducing financing flexibility.
Risk Level: Medium
Company Commentary
- CARE Ratings has assigned and reaffirmed ratings for the bank facilities of the company’s subsidiaries.
- A previous long-term facility rating was withdrawn following receipt of a No-Dues Certificate from the earlier lender.
- The company disclosed the rating actions under Regulation 30 of the SEBI Listing Regulations.
- The updated ratings reflect the current financing structure of the subsidiaries.
Official Exchange Filing: SAMHI Hotels Limited
