Thursday 31 March 2016

Fitch upgrades Hemas Holdings to ‘AA-(lka)’

Fitch Ratings has upgraded Hemas Holdings’ National Long-Term Rating to ‘AA-(lka)’ from ‘A+(lka)’. The Outlook is Stable.

It has also upgraded the National Long-Term Rating on Hemas’s senior unsecured debentures to ‘AA-(lka) from ‘A+ (lka)’.

The upgrade reflects the company’s improved business risk profile, which is aided by its strong presence in the defensive healthcare and fast moving consumer good (FMCG) sectors. It also reflects its increased focus on the high growth leisure sector and its conservative expansion strategy.

The rating also takes in to account the stronger balance sheet after a rights issue in 2015, which provides strong support for Hemas’s growth strategy.

The acquisition of JL Morison (JLM) has significantly strengthened Hemas’s local drug manufacturing capabilities, which is poised to benefit from the expansion of a government programme to purchase drugs from local manufacturers.

Hemas also aims to expand its hospital chain to take advantage of a rapidly aging population, higher income levels and increasing occurrences of non-communicable diseases.

Hemas will have 705 rooms by the end of the financial year to 31 March 2017(FY17) with the opening of two five-star hotels in collaboration with Minor Group under the Anantara brand.
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