Research Update: Peruvian Private Healthcare Service Provider Auna S.A.A. Assigned 'B+' Ratings; Outlook Stable

Auna S.A.A. is the leading private healthcare service provider in Peru through its Oncosalud and private hospitals and clinics network, and recently entered the Colombian private healthcare market with the acquisition of the Las Americas clinic in 2018, and the Portoazul clinic in September 2020. On Nov. 17, 2020, Auna issued $300 million in senior unsecured notes due 2025 with a 6.5% coupon to refinance $255.5 million of existing debt. It will use the remaining proceeds for general corporate purposes, including capital expenditures (capex). This transaction extended the company's debt maturity profile and strengthened its liquidity position. We are assigning our 'B+' long-term issuer credit rating to Auna and 'B+' issue-level rating to the company's $300 million senior unsecured notes.

...- Auna S.A.A. is the leading private healthcare service provider in Peru through its Oncosalud and private hospitals and clinics network, and recently entered the Colombian private healthcare market with the acquisition of the Las Americas clinic in 2018, and the Portoazul clinic in September 2020. - On Nov. 17, 2020, Auna issued $300 million in senior unsecured notes due 2025 with a 6.5% coupon to refinance $255.5 million of existing debt. It will use the remaining proceeds for general corporate purposes, including capital expenditures (capex). This transaction extended the company's debt maturity profile and strengthened its liquidity position. - We are assigning our 'B+' long-term issuer credit rating to Auna and 'B+' issue-level rating to the company's $300 million senior unsecured notes. - The stable outlook assumes that Auna will maintain solid operations, despite the impact of COVID-19 during the second quarter. We expect Auna's gross leverage ratio will be below 5.0x by the end...

Research Update