Company Background:
The company operates three hotels in Bangalore and is a part of a distinguished group with over 30 years of experience in real estate and hospitality.
Problem:
During COVID-19, the company received a ‘C’ rating primarily due to delays in debt servicing, which stemmed from liquidity mismatches caused by the pandemic’s impact on business operations and lower occupancy rates.
Solution:
We engaged with a rating agency to highlight the company’s post-COVID improvements, including increased occupancy, cost efficiencies, strong group support, and ample liquidity. This led to a rating upgrade to ‘B’. Six months later, after emphasizing debt refinancing and smooth banking operations, the rating improved to ‘BB+’. Following an appeal, it was further upgraded to ‘BBB-’, reflecting enhanced liquidity and robust group backing.
Impact:
The rating upgrades positively impacted the company by enhancing its reputation and securing more favorable financing terms, which have paved the way for future growth opportunities.
