CARE has revised the rating assigned for Bharat Hotels' long-term bank facilities, aggregating to the worth of Rs 645.14 crore (reduced from Rs 679.4 crore), to 'BBB+' from 'A+'. Further, the rating agency, also has revised the rating for company's short-term bank facilities, aggregating to the worth of Rs 40 crore (reduced from Rs 55 crore), to 'A3+' from 'A1+'. Meanwhile, the rating assigned for company's Rs 106.67 crore worth Non-Convertible Debenture (NCD) also has been revised, from 'A+' to 'BBB+'
The revision in the ratings take into account the decline in the operating performance due to increasing competition across all locations, moderation in the financial risk profile as characterized by increase in the leverage and deterioration in the coverage indicators and delay in the proposed sale of non-core assets. The ratings are also constrained due to large ongoing debt-funded projects coupled with bunching of debt repayments in the medium term and an overall subdued industry. The ratings, however, continue to derive strength from the experienced promoters, long track record of operations and presence at multiple locations.
Bharat Hotels owns and operates nine five-star hotels under the brand name, Lalit, at Delhi, Mumbai, Bangalore, Udaipur, Goa, Khajurao, Jaipur and Srinagar and a spa-cum-resort located at Bekal (Kerela).