Press Release

Little Flower Trust February 10, 2021 Rating Amount Facilities/Instruments Ratings Rating Action (Rs. crore) CARE BB+; Stable; Revised from CARE BBB-; Stable ISSUER NOT COOPERATING* (Triple B Minus; Outlook: Stable) and Long Term Bank Facilities 25.38 (Double B Plus; Outlook: Stable moved to ISSUER NOT COOPERATING ISSUER NOT COOPERATING*) category 25.38 (Rs. Twenty-Five Total Bank Facilities Crore and Thirty-Eight Lakhs Only) Details of instruments/facilities in Annexure-1

Detailed Rationale & Key Rating Drivers CARE has been seeking information from Little Flower Hospital Trust to monitor the rating vide e-mail communications/letters dated December 03, 2020, December 08, 2020, December 17, 2020 , January 04, 2021, January 14, 2021 among others and numerous phone calls. However, despite our repeated requests, the trust has not provided the requisite information for monitoring the ratings. In line with the extant SEBI guidelines, CARE has reviewed the rating on the basis of the best available information which however, in CARE’s opinion is not sufficient to arrive at a fair rating. The rating on Little Flower Hospital Trust’s bank facilities will now be denoted as CARE BB+; Stable ; ISSUER NOT COOPERATING*.

Users of this rating (including investors, lenders and the public at large) are hence requested to exercise caution while using the above rating. The rating have been revised on account of absence of information on entity’s financial and operational performance and other critical data related to the business of the entity post the last review. Detailed description of the key rating drivers At the time of last rating on April 6, 2020 the following were the rating strengths and weaknesses: Key Rating Strengths Improvement in the overall financial profile marked by growth in gross receipts, improved SBID margins, capital structure and debt coverage indicators The gross receipts of the trust increased by ~16% from Rs.109.40 crore in FY18 to Rs.127.04 crore in FY19. The increase in the revenue was on back of back of revision of rates w.r.t., accommodation charges, care, consultation charges among others along with higher number of surgeries performed. The SBID margin of the trust declined by 300 bps from 15.98% in FY18 to 12.98% in FY19. The surplus margin, also has marginally declined from 3.78% in FY18 to 3.29% in FY19 resulting from a decline in SBID in absolute terms. The capital structure marked by overall gearing improved along with an increase in the tangible net worth of the trust on account of accretion of profits to the funds of the trust. The debt coverage indicators marked by interest coverage ratio improved at the back of decline in interest charges due to repayment of term loans. TD/GCA also, marginally improved from 3.80x in FY18 to 3.02x in FY18 on account of decline in the total debt. Long track record and well-established operation of the hospital, run by LFHT and the satisfactory occupancy level The hospital is in existence since 1936 and is well known for its department. The hospital is a 910 bedded multi-speciality hospital. It is recognized for the various health care initiatives taken by it in the field of eye care through regular eye camps, school screening, peripheral eye care centres, eye bank, etc. in addition to other village health care initiatives taken by it. Key Rating Weaknesses Growing competition in healthcare industry and availability and retention of trained medical professionals The hospital sector is highly fragmented with few large players in the organized sector and numerous small payers in the unorganized sector leading to high level of competition in the sector. One of the major problems faced by most private is retention of medical professionals – doctors, paramedical, lab technicians, etc., who are essential for their operation.

Analytical approach: Standalone Applicable Criteria CARE’s Criteria on assigning ‘Outlook’ and ‘credit watch’ to Credit Ratings CARE’s Policy on Default Recognition Financial ratios – Non-Financial Sector

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Rating Methodology – Service Sector Companies Rating Methodology – Hospital Industry

About the Entity M/s. Little Flower Hospital Trust (LFHT) is a ‘not-for-profit’ organization with the primary objective of providing health care & related services for charitable and philanthropic purposes. LFHT runs a 910-bed hospital in the name of ‘Little Flower Hospital & Research Centre’ (LFHRC) in , . In addition, LFHT also operates a research division, a nursing school & college, and one annex building for the hospital at Koonammavu (Kerala) to extend their reach of service. LFHT was established in 1994 to enable the Archbishop of Diocese to take over the then ‘Little Flower Hospital’, which has been providing healthcare for public in the Angamaly region of Kerala since 1936. The operations of LFHT are managed by trustees who are in turn appointed by the Ernakulam Archdiocese. The present operations of the trust are managed by Reverend Father Sebastian Kalapurackal, who is the executive trustee of LFHT. The entity has availed moratorium from lender as per Covid-19 regulatory package.

Brief Financials (Rs. crore) FY18 FY19 A A Total operating income 109.40 127.04 PBILDT 17.49 16.49 PAT 4.14 4.18 Overall gearing (times) 1.66 1.14 Interest coverage (times) 3.62 3.98 A: Audited Status of non-cooperation with previous CRA: Not Applicable Any other information: Not Applicable Rating History for last three years: Please refer Annexure-2

Annexure-1: Details of Instruments/Facilities

Size of the Name of the Date of Coupon Maturity Issue Rating assigned along ISIN Instrument Issuance Rate Date (Rs. with Rating Outlook crore)

Fund-based - LT- CARE BB+; Stable; ISSUER - - - - 10.00 Bank Overdraft NOT COOPERATING* Fund-based - LT- CARE BB+; Stable; ISSUER - - - - 1.70 Term Loan& NOT COOPERATING* Fund-based - LT- CARE BB+; Stable; ISSUER - - - July 2021 3.41 Term Loan NOT COOPERATING* Fund-based - LT- CARE BB+; Stable; ISSUER Working Capital - - - - 2.77 NOT COOPERATING* Demand loan Fund-based - LT- CARE BB+; Stable; ISSUER - - - August 2027 7.50 Term Loan NOT COOPERATING* *Issuer did not cooperate; Based on best available information &Loan has been repaid, conformation from the banker is awaited.

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Annexure-2: Rating History of last three years Current Ratings Rating history Date(s) & Date(s) & Date(s) & Date(s) & Name of the Type Rating Sr. Amount Rating(s) Rating(s) Rating(s) Rating(s) Instrument/Bank No. Outstanding assigned assigned assigned assigned Facilities (Rs. crore) in 2020- in 2019- in 2018- in 2017-

2021 2020 2019 2018 1)CARE 1)CARE 1)CARE 1)CARE CARE BB+; Stable; BBB-; BB+; BB+; BB+; Fund-based - LT- ISSUER NOT 1. LT 10.00 Stable Stable Stable Stable Bank Overdraft COOPERATING* (06-Apr- (02-Apr- (02-Apr- (15-May-

20) 19) 18) 17) 1)CARE 1)CARE 1)CARE 1)CARE CARE BB+; Stable; BBB-; BB+; BB+; BB+; Fund-based - LT- ISSUER NOT 2. LT 1.70 Stable Stable Stable Stable Term Loan COOPERATING* (06-Apr- (02-Apr- (02-Apr- (15-May-

20) 19) 18) 17) 1)CARE 1)CARE 1)CARE 1)CARE CARE BB+; Stable; BBB-; BB+; BB+; BB+; Fund-based - LT- ISSUER NOT 3. LT 3.41 Stable Stable Stable Stable Term Loan COOPERATING* (06-Apr- (02-Apr- (02-Apr- (15-May-

20) 19) 18) 17) 1)CARE 1)CARE 1)CARE 1)CARE CARE BB+; Stable; Fund-based - LT- BBB-; BB+; BB+; BB+; ISSUER NOT 4. Working Capital LT 2.77 Stable Stable Stable Stable COOPERATING* Demand loan (06-Apr- (02-Apr- (02-Apr- (15-May-

20) 19) 18) 17) 1)CARE 1)CARE 1)CARE CARE BB+; Stable; BBB-; BB+; BB+; Fund-based - LT- ISSUER NOT 5. LT 7.50 Stable Stable Stable - Term Loan COOPERATING* (06-Apr- (02-Apr- (02-Apr-

20) 19) 18) *Issuer did not cooperate; Based on best available information

Annexure-3: Detailed explanation of covenants of the rated instrument / facilities- Not Applicable

Annexure-4: Complexity level of various instruments rated for this Entity Sr. Name of the Instrument Complexity Level No. 1. Fund-based - LT-Bank Overdraft Simple 2. Fund-based - LT-Term Loan Simple 3. Fund-based - LT-Working Capital Demand loan Simple

Note on complexity levels of the rated instrument: CARE has classified instruments rated by it on the basis of complexity. This classification is available at www.careratings.com. Investors/market intermediaries/regulators or others are welcome to write to [email protected] for any clarifications.

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Contact us Media Contact Mradul Mishra Contact no. – +91-22-6837 4424 Email ID – [email protected]

Analyst Contact Avinava Adhikary 033- 4058 1906 [email protected]

Relationship Contact Nitin Kumar Dalmia 080-46625555 [email protected]

About CARE Ratings: CARE Ratings commenced operations in April 1993 and over two decades, it has established itself as one of the leading credit rating agencies in India. CARE is registered with the Securities and Exchange Board of India (SEBI) and also recognized as an External Credit Assessment Institution (ECAI) by the Reserve Bank of India (RBI). CARE Ratings is proud of its rightful place in the Indian capital market built around investor confidence. CARE Ratings provides the entire spectrum of credit rating that helps the corporates to raise capital for their various requirements and assists the investors to form an informed investment decision based on the credit risk and their own risk-return expectations. Our rating and grading service offerings leverage our domain and analytical expertise backed by the methodologies congruent with the international best practices.

Disclaimer CARE’s ratings are opinions on the likelihood of timely payment of the obligations under the rated instrument and are not recommendations to sanction, renew, disburse or recall the concerned bank facilities or to buy, sell or hold any security. CARE’s ratings do not convey suitability or price for the investor. CARE’s ratings do not constitute an audit on the rated entity. CARE has based its ratings/outlooks on information obtained from sources believed by it to be accurate and reliable. CARE does not, however, guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. Most entities whose bank facilities/instruments are rated by CARE have paid a credit rating fee, based on the amount and type of bank facilities/instruments. CARE or its subsidiaries/associates may also have other commercial transactions with the entity. In case of partnership/proprietary concerns, the rating /outlook assigned by CARE is, inter-alia, based on the capital deployed by the partners/proprietor and the financial strength of the firm at present. The rating/outlook may undergo change in case of withdrawal of capital or the unsecured loans brought in by the partners/proprietor in addition to the financial performance and other relevant factors. CARE is not responsible for any errors and states that it has no financial liability whatsoever to the users of CARE’s rating. Our ratings do not factor in any rating related trigger clauses as per the terms of the facility/instrument, which may involve acceleration of payments in case of rating downgrades. However, if any such clauses are introduced and if triggered, the ratings may see volatility and sharp downgrades.

**For detailed Rationale Report and subscription information, please contact us at www.careratings.com

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