RAM Ratings reaffirms Lanka Hospital's ratings at A+

RAM Ratings Lanka reaffirms Lanka Hospital's ratings at A+ and P1 RAM Ratings Lanka has reaffirmed Lanka Hospitals Corporation PLC's ("LHC" or "the Hospital") respective long- and short-term corporate credit ratings at A+ and P1; the long-term rating has a stable outlook. LHC is a private healthcare provider in Sri Lanka.

The ratings are upheld by the Company's strong financial profile, liquidity, expected state support and bright outlook for private healthcare in Sri Lanka.

LHC's financial profile is reflective of its conservative investment policy; its cash-flow protection metrics were strong while its gearing ratio stood at a low 0.03 times as at FYE December 31, 2011 ("FY Dec 2011"). The Hospital's funds from operations ("FFO") debt coverage was also healthy at 6.73 times. Looking ahead, we envisage LHC's gearing and FFO levels to moderate amid increased debt to funds its growth plans in 2013.