Fitch rates Golkonda Hospitality

Fitch Ratings said it assigned Golkonda Hospitality Services and Resorts Ltd. a national long-term rating of B+(ind), along with its B+(ind) rating on its term loans of Rs. 127.5 million, B+(ind) rating on its cash credit limit of Rs. 12.5 million and B+(ind)/F4(ind) ratings non-fund based working capital limits of Rs. 12.5 million.

The outlook is stable.

The ratings incorporate the significant levels of debt and high leverage of the company, with a debt-to-EBITDA ratio of 4.2x, Fitch said.

The agency said it believes the risk of lower occupancy and room rates affecting its profitability continues to exist in the medium-term.

The ratings derive comfort from the long history of operations and the prime location of the company's hotel in Hyderabad, Fitch said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.