23rd Apr 2018 07:12
LONDON (Alliance News) - Moody's Investors Service has assigned a Ba1 corporate family rating to FTSE 100-listed NMC Health PLC with a stable outlook, citing its position as the largest healthcare provider in the United Arab Emirates.
This is the first time NMC has received a rating from Moody's.
The stable outlook reflects NMC's position in an "affluent healthcare market" with "an attractive demographic profile". The healthcare provider also operates "one of the largest" wholesale distribution busineeses in the UAE, Moody's noted.
Moody's said the rating also reflects NMC's "favourable regulatory environment" in the UAE.
As of December 31, NMC owned 75 healthcare facilities and managed 65, with around six million patients seen in 2017.
In terms of concentration, six facilities represent 68.3% of earnings before income, taxation, depreciation and amortisation.
To be considered for an upgrade to Baa3, NMC's scale would need to exceed USD5 billion in revenue, up from USD1.6 billion in 2017, with the ratio of debt to earnings before interest, taxation, depreciation and amortisation trending below 3x, Moody's said.
NMC's ratings would be downgraded if the company fails to deleverage towards debt/EBITDA of 3x over the next 18 months, the ratings agency said, and its liquidity profile or key operating facilities become "pressured due to unforeseen challenges".
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