Yashoda Medicare & Research Centre gets BBB- from CARE

2 November 2010 - CARE on Monday assigned its BBB- rating to the INR350m long-term bank facilities of Yashoda Medicare & Research Centre Private Ltd.

The agency issued the following press release:

Rating Facilities Amount (Rs. crore) Ratings1 Remarks

Long-term Bank Facilities 35.0 'CARE BBB-' (Triple B Minus) Assigned

Total Facilities 35.0

Rating Rationale

The rating derives strength from the experience of the promoters in the medical field, locational advantage of the multi speciality hospital projects in Bangalore and Ranchi, completion of the Bangalore hospital, equity infusion by the promoters for the Ranchi project and growth in health insurance propelling growth in the healthcare sector.

The rating is, however, constrained by project implementation risk (in case of the Ranchi project) as well as absence of any tie-ups with corporate and/or insurance companies.

Smooth roll-out of operations at the Bangalore hospital, successful implementation of the Ranchi project as well as ability to maintain high occupancy rate and service quality are the key rating sensitivities.

Company Profile

Yashoda Medicare & Research Centre Pvt. Ltd. (YMPL) was incorporated in March 2007 with the primary objective of setting up health care facilities and subsequently offering health care services in India. The company has set up a 240-bed multi-speciality hospital in Bangalore, which became operational in September 2010. The company is also setting up a 180-bed multi speciality hospital in Ranchi which, expected to be operational by April 2011.

Both the hospitals propose to offer a full range of health care services such as internal medicine, general surgery, cardiology, neurosurgery, orthopaedics, obstetrics and gynaecology, paediatrics, diagnostic services, emergency services etc. The cost of setting up the Ranchi hospital is Rs.29.3 crore. The company spent Rs.9.0 crore for the Ranchi project till August 30, 2010.