Double B rating assigned to Rs 155 crore long term loan of Purbanchal Cancer Hospital Private Limited
Tue, Jun 9, 2020 3:10 PM on Credit Rating, Latest,
CARE Ratings Nepal Limited (CRNL) has assigned rating of ‘CARE-NP BB’ to the long-term bank facilities of Purbanchal Cancer Hospital Private Limited (PCH).
The ratings assigned to the bank facilities of PCH is constrained by project implementation and stabilization risk, financial closure yet to be achieved for the partial project cost, availability and attrition of medical professionals and high vulnerability to treatment-related risks. The rating is also constrained by PCH’s exposure to volatile interest rates and foreign exchange fluctuation risk.The rating, however, derives strength from promoter having experience in health sector, experienced and specialized medical staff, expected synergies from existing hospital of the promoter group. The rating also factors in growing demand in the healthcare sector,geographical advantage and modern equipment and services. The ability of PCH to timely execute the project avoiding any time or cost overrun and to achieve projected patient inflow and revenue are the key rating sensitivities.
Key Rating Weaknesses
- Project implementation risk and stabilisation risk
- Financial closure yet to be achieved for the partial project cost
- Availability and attrition of medical professionals
- High vulnerability to treatment-related risks
- Foreign exchange fluctuation risk
- Exposure to volatile interest rate
Key Rating Strengths
- Promoter with experience in health sector
- Experienced and Specialized medical staff
- Expected synergies from existing Hospital of the promoter group
- Growing demand in the health sector
- Modern equipment and services
- Geographical advantage
About the Company
Purbanchal Cancer Hospital Pvt. Limited (PCH) is a private limited company, incorporated as on September 15, 2017. It is promoted by individual promoter, Mr. Durga Prasad Prasai for setting up a 300 bed Cancer Specialty Hospital (PCH) in Jhapa district of Province 1. PCH will be one of the few cancer specialty hospitals in Nepaland only hospital of its kind in Province 1 of Nepal.
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