RATING RATIONALE
14Jul2021

Asian Hotels (North) Ltd

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)
#Please refer to BWR website www.brickworkratings.com for definition of the ratings
**Details of Bank Loan facilities,consolidation or instruments are provided in Annexure


RATING ACTION / OUTLOOK

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 DRIVERS

Credit Strengths:


Credit Risks:

ANALYTICAL APPROACH - Standalone

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 ENTITY

Asian 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.


RATING HISTORY FOR THE PREVIOUS THREE YEARS (including withdrawal and suspended)
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)
COMPLEXITY LEVELS OF THE INSTRUMENTS - Simple

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
Asian Hotels (North) Ltd
ANNEXURE-I
Details of Bank Facilities rated by BWR
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)
ANNEXURE-III
List of entities consolidated

Name of Entity% OwnershipExtent of consolidationRationale 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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