Moody’s assigns Ba1 rating to NMC Healthcare

Agency puts UAE health-care provider rating on stable outlook

Moody’s Investor Service assigned a Ba1 rating to NMC Healthcare, the largest publicly-traded healthcare provider in the UAE, the first time the agency has rated the company.

The agency assigned the firm, which has a market value of $10.8 billion, a Ba1 corporate family rating and Ba1-PD probability of default rating. That puts the company one notch below investment grade, meaning that investment in the firm’s debt has an element of speculation and carries some credit risk. Moody's said the outlook on the rating was stable.

The ratings with a stable outlook “reflect its business profile as the largest healthcare provider in the United Arab Emirates, which is an affluent healthcare market with an attractive demographic profile,” Moody’s said.


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“NMC also operates one of the largest wholesale distribution business in the UAE, including fast-moving consumer goods, pharmaceuticals and scientific equipment. The ratings also take into account NMC’s favourable regulatory bodies that adopt a constructive approach to dealing with any challenges that may arise.”

When it comes to the question of risk, Moody's noted that the company has not faced any closure or censure of its facilities and that it continues to make an effort to meet self-imposed standards that are higher than those required by regulators.

“This approach supports, in turn, its resilient business model, loyal customer base, strong brand recognition and market leading position,” the ratings agency said.

“NMC also continues to attract highly skilled doctors to its facilities from the Middle East and further afield through enticing remuneration packages and working conditions and because of the good quality of life offered to expatriate workers in the UAE.”