Netcare Limited

South Africa

Netcare Limited (2022-02)

Whilst the second half of FY20 was fraught with COVID-19 disruptions that notably weakened the group’s financial performance, Netcare has shown an improved ability to more efficiently manage its operations amidst two additional COVID-19 waves during FY21 and a further one during 1Q FY22. To this end, the group reported total revenue growth of 12.5% to R21.2bn at FY21 (back to pre-pandemic levels), supported by an increase in total patient days of 6.8%, driven most notably by YoY growth of 36.6% in 2H FY21.

Tokens: 3 Price: USD 300.00

Netcare Limited

The Negative Outlook on Netcare Limited’s (“Netcare” or “the group”) ratings reflect the significant adverse impact that COVID-19 continues to exert on its earnings and gearing profile. Nevertheless, the ratings remain reflective of the group’s strong domestic market position and liquidity profile. Netcare’s financial profile was substantially negatively impacted by the COVID-19 pandemic, as almost all elective procedures were brought to a halt during 2H FY20.

Tokens: 2 USD 150.00

Netcare Limited

The ratings on Netcare Limited reflect the group’s modest leverage profile, alongside its strong domestic market position and stable earnings. This is, however, counterbalanced by the group’s geographic concentration.

Positively contributing to the rating is Netcare’s strong domestic market competitive position as one of the three largest private healthcare groups in South Africa.

Tokens:1 Price: USD 75.00

Netcare Limited

JSE-listed Netcare is one of SA’s largest private healthcare services providers. Netcare’s offering includes an extensive network of hospitals and day clinics, with treatments ranging from acute to primary care, dialysis; as well as emergency and mental health services. The group historically operated in both South Africa and the UK (via its stake in BMI Healthcare Ltd (“BMI”), a major independent service provider), although management took the decision to divest from the latter region as at 28 March 2018. This, as the UK business continued to struggle in the face of increased medical funder-led demand management initiatives amongst other pressures. Thus, in its current operational form, Netcare Limited now purely consists of the South African business, but still holds a 56.9% interest in GHG PropCo 2 (a portfolio of 6 properties where BMI is the tenant), which is carried at R203m as held for sale.

Netcare Limited (2018-03)

A Credit Rating report is a research report providing detailed analysis utilised by GCR in the accordance of a Credit Rating.

Netcare Limited (2017-02)

A Credit Rating report is a research report providing detailed analysis utilised by GCR in the accordance of a Credit Rating.

Netcare Limited (2016-02)

A Credit Rating report is a research report providing detailed analysis utilised by GCR in the accordance of a Credit Rating.

Netcare Limited (2015-02)

A Credit Rating report is a research report providing detailed analysis utilised by GCR in the accordance of a Credit Rating.

Netcare Limited (2014-07)

A Credit Rating report is a research report providing detailed analysis utilised by GCR in the accordance of a Credit Rating.

Netcare Limited (2013-01)

A Credit Rating report is a research report providing detailed analysis utilised by GCR in the accordance of a Credit Rating.

Netcare Limited (2013-02)

A Credit Rating report is a research report providing detailed analysis utilised by GCR in the accordance of a Credit Rating.

Netcare Limited (2011-01)

A Credit Rating report is a research report providing detailed analysis utilised by GCR in the accordance of a Credit Rating.

Netcare Limited (2011-01)

A Credit Rating report is a research report providing detailed analysis utilised by GCR in the accordance of a Credit Rating.

Netcare Limited (2010-06)

A Credit Rating report is a research report providing detailed analysis utilised by GCR in the accordance of a Credit Rating.

Netcare Limited Current Ratings

Issue Name Rating Country Rating Published
-- Short Term rating: A1+(ZA); Outlook: Negative South Africa 08-02-2021 0:00:00
-- Long Term Rating: AA-(ZA); Outlook: Negative South Africa 08-02-2021 0:00:00
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