Brickwork Ratings downgrades the ratings to BWR D for the Bank Loan Facilities of Rs. 416.24 Crs of Asian Hotels (North) Ltd.
Particulars| Facilities** | Amount (Rs.Crs.) | Tenure | Rating# | ||
|---|---|---|---|---|---|
| Previous | Present | Previous (19 Aug 2020) |
Present | ||
| Fund Based | 416.24 | 416.24 | Long Term |
BWR B
/Negative Downgrade |
BWR D
Downgrade |
| Grand Total | 416.24 | 416.24 | (Rupees Four Hundred Sixteen Crores and Twenty Four lakhs Only) | ||
Brickwork Rating Downgrades the rating of Bank Loan facilities to BWR D from BWR B/Negative. The downgrade is on account of the feedback received on 13th July 2021 from one of the lender regarding interest overdue in the account since 30 June 2021 and the asset quality is substandard.
As per the information by the company to stock exchange, the company filled application regarding One Time Restructuring (OTR) of its credit facilities with all the lenders, subsequently invocation of OTR was done on 09 Dec 2020 and Inter creditor agreement was signed on 23 Dec 2020 by all the lenders. The one-time restructuring plan have been approved and implemented by the consortium of Bankers.
KEY RATING DRIVERSCredit Strengths:
AHNL, incorporated in 1980, promoted by Mr. Shiv Kumar Jatia has an extensive experience of over 3 decades in the hospitality industry. Mr. Jatia has extensive experience of more than three decades in the hospitality sector and has been operating a hotel property under the brand, Hyatt Regency, in New Delhi since 1983.
The hotel is located in the southern part of Delhi with close proximity to the international & domestic airport, commercial business districts and other up market areas of south Delhi. The location allows the hotel to tap the corporate clientele and other clientele from airports and business centers
AHNL has tie up with Hyatt Group for trademark. Hyatt is a leading global hospitality group with over 30 years of experience in the Indian markets.
The financial performance has weakened marked by reduced operating income, increasing losses & high debt. The Company has reported revenue of Rs. 72.58 Cr and reported EBITDA loss of Rs. 22.61 Cr and net loss of Rs. 694.98 Cr for FY21.
Consolidated
RATING SENSITIVITIES
Significant improvement in overall credit profile, operational performance and track record on timely repayment of debt.
LIQUIDITY INDICATORS - Poor
As reflected in the form of weak financials performance.
ABOUT THE ENTITYAsian Hotel Limited (AHL) was promoted by Jatia, Gupta and Saraf families in 1980. AHL engaged in the business of operating a hotel property under the brand, Hyatt Regency, a five-star hotel, with 507 rooms and five restaurants located at Bhikaji Cama Place, New Delhi. Currently, the promoter shareholding is with the Jatia family. AHNL operates Hyatt Regency, New Delhi, a five-star hotel, with 507 rooms and five restaurants located at Bhikaji Cama Place, New Delhi. AHNL has also developed a new commercial tower “New Towers” at its existing hotel complex.
| Facilities | Current Rating (2021) | 2020 | 2019 | 2018 | |||||
|---|---|---|---|---|---|---|---|---|---|
| Type | Tenure | Amount (Rs.Crs.) |
Rating | Date | Rating | Date | Rating | Date | Rating |
| Fund Based | LT | 416.24 |
BWR D
(Downgrade) |
19Aug2020 |
BWR B/Negative
(Downgrade) |
24May2019 |
BWR BB+/Stable
(Downgrade) |
27Jun2018 |
BWR BBB/Stable
(Reaffirmed) |
| NA |
NA
|
20Mar2020 |
BWR BB/Negative
(Downgrade) |
NA |
NA
|
NA |
NA
|
||
| Grand Total | 416.24 | (Rupees Four Hundred Sixteen Crores and Twenty Four lakhs Only) | |||||||
BWR complexity levels are meant for educating investors. The BWR complexity levels are available at www.brickworkratings.com / download / ComplexityLevels.pdf. Investors queries can be sent to info@brickworkratings.com.
Hyperlink/Reference to applicable Criteria| Analytical Contacts | |
|---|---|
|
Ajit S Jagnade Senior Manager - Ratings Board : +91 22 2831 1426, +91 22 2831 1439 ajit.j@brickworkratings.com |
Bal Krishna Piparaiya Senior Director - Ratings Board : +91 22 2831 1426, +91 22 2831 1439 piparaiya.bk@brickworkratings.com |
| 1-860-425-2742 | media@brickworkratings.com | |
| SL.No. | Name of the Bank/Lender | Type Of Facilities | Long Term(Rs.Crs.) | Short Term(Rs.Crs.) | Total(Rs.Crs.) | |
|---|---|---|---|---|---|---|
| 1 | IndusInd Bank | Term LoanOut-standing | 95.70 | _ | 95.70 | |
| 2 | Punjab National Bank | Term LoanOut-standing | 140.03 | _ | 140.03 | |
| 3 | Yes Bank | Term LoanOut-standing | 148.51 | _ | 148.51 | |
| 4 | Yes Bank | Over DraftSanctioned | 32.00 | _ | 32.00 | |
| Total | 416.24 | 0.00 | 416.24 | |||
| TOTAL (Rupees Four Hundred Sixteen Crores and Twenty Four lakhs Only) | ||||||
| Name of Entity | % Ownership | Extent of consolidation | Rationale for consolidation |
|---|---|---|---|
| Fineline Hospitality & Consultancy Pte Ltd (FHCPL)-an Overseas Subsidiary | 100 | ||
| Lexon Hotel Ventures Limited (Lexon), a subsidiaryof FHCPL | 80 | ||
| Leading Hotels Limited (LHL), a subsidiary of Lexon | 79.81 |
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About Brickwork RatingsBrickwork Ratings (BWR), a Securities and Exchange Board of India [SEBI] registered Credit Rating Agency and accredited by Reserve Bank of India [RBI], offers credit ratings of Bank Loan, Non- convertible / convertible / partially convertible debentures and other capital market instruments and bonds, Commercial Paper, perpetual bonds, asset-backed and mortgage-backed securities, partial guarantees and other structured / credit enhanced debt instruments, Security Receipts, Securitization Products, Municipal Bonds, etc. BWR has rated over 11,400 medium and large corporates and financial institutions’ instruments. BWR has also rated NGOs, Educational Institutions, Hospitals, Real Estate Developers, Urban Local Bodies and Municipal Corporations. BWR has Canara Bank, a leading public sector bank, as one of the promoters and strategic partner. BWR has its corporate office in Bengaluru and a country-wide presence with its offices in Ahmedabad, Chandigarh, Chennai, Hyderabad, Kolkata, Mumbai and New Delhi along with representatives in 150+ locations.
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