Fortis Healthcare records second rating downgrade in a week

In a blacklash to Fortis Healthcare, ratings agency CARE Ratings downgraded its ratings on borrowings worth Rs 853 crore on Wednesday. This was the second downgrade of the company’s loans within the span of a week.

The rating agency, in its revision of the health care major’s ratings, stated that the ratings were lowered in the wake of concerns over liquidity position after the disclosure about the advances extended to its promoters, specially the Singh brothers by the company. The company’s loans comprised of Rs. 53 crore loans of Fortis Healthcare’s subsidiary Escorts Heart Institute and Research Centre.    

Earlier in the week, another rating agency, ICRA had also lowered the ratings of the company’s loans worth Rs. 1,170 crore on a similar account. Recently the promoters also reduced their stake in Fortis Hospitals to 34.43 per cent on December 31, 2017 from 70.28 per cent in September 30, 2016.

On the stock market, the company hit an intraday high of Rs. 143.95 per share and an intraday low of Rs. 137.20 per share on BSE on Thursday. At 1204 hours IST, the stock was trading at Rs. 139.95 per share, lower by 1.79 per cent on BSE.