RAM assigns A rating to Nawaloka Hospital's proposed debentures

RAM Ratings Lanka has assigned a long-term issue rating of A to Nawaloka Hospitals PLC's proposed Rs 1.5 billion Listed, Rated, Unsecured and Redeemable Debentures (2013/2023).

"Concurrently, we have reaffirmed the company's long and short-term corporate credit ratings at A and P2; the long- term ratings carry a stable outlook," a release from RAM Ratings said.

The ratings continued to be supported by the Group's strong competitive position, lower leverage and strong debt-protection metrics and the bright demand outlook for the private healthcare sector.

On the other hand, the ratings are weighed down by its limited geographical presence and capacity constraints, the shortage of skilled healthcare personnel and the Group's heightened exposure to liquidity risk. With a 415-bed capacity, Nawaloka is the largest private hospital in Sri Lanka in terms of bed-count at a single location.

Despite keener competition, the Group's competitive position has remained strong, underpinned by its reputation and track record.