CRISIL has assigned its bank loan ratings of ‘BB/Stable/P4’ to the various bank facilities of Ivy Health and Life Sciences Pvt Ltd (Ivy). The ratings reflect Ivy’s weak financial risk profile, marked by high gearing and weak debt protection measures, and small scale of operations and exposure to risks relating to geographic concentration in revenues. These weaknesses are, however, partly mitigated by Ivy’s modern infrastructure, backed by tie-ups with leading service providers in specialty fields.

Outlook:Stable
CRISIL believes that Ivy Health & Life Sciences Pvt Ltd’s (Ivy’s) financial risk profile will remain weak with high gearing levels and weak debt protection measure due to initial losses. The outlook may be revised to ‘Positive’ in case of faster-than-expected revenue growth and profitability. Conversely, outlook can be revised to ‘Negative’ in case of slower than expected growth in revenue and profitability or additional debt funded capex.

About Ivy
Incorporated in 2005, Ivy has established the 100-bed, multi-specialty, Ivy Hospital with emphasis on oncology (cancer-related diseases), in Mohali, Punjab. The hospital began commercial operations in December 2007. The company has adopted the ‘health mall’ concept, wherein basic infrastructure, general departments, and utilities are owned by the company, while specialty departments, such as oncology, are outsourced to independent doctors and external agencies. A major portion of the investment in medical equipment is by the respective doctors/agencies, with Ivy receiving a share of the department revenues. Ivy also receives revenues from room rentals, general departments, and utilities. Eight specialty departments are already operational, all of which, except radiology, are outsourced. Dr. Kanwaldeep Kaur, one of the promoters of the company, heads the radiology department. Ivy is setting up four more specialty departments, which are expected to begin operations by the end of 2008-09 (refers to financial year, April 1 to March 31).