New Kenil Worth Hotel Ltd

• Fixed deposit programme Rating : FA+ to FA (downgraded)

The rating of New Kenilworth Hotel Limited’s (Kenilworth) Fixed Deposit programme has been downgraded from ‘FA+’ (pronounced F A plus) to ‘FA’ (pronounced F A).

The revision in rating is due to the weakening financial risk profile of the company on account of the delay in the commissioning of its hotel at Goa, which the company has taken on operating lease from its subsidiary. The rating, however, continues to be supported by Kenilworth''s strong brand image as a ‘value for money’ hotel in Calcutta and the expected sustainability of the comfortable business position of its Calcutta property. The rating also factors the anticipated improvement in the performance of the Goa property, subsequent to its full commissioning in the near future.

Kenilworth, belonging to the Calcutta based Mr. M.S. Bharat, owns and operates a 105 room property in Calcutta. Till June 1998, the company was also managing a 72 room property at Bhubaneshwar, the lease of which has since expired. During 1998-99, the company also acquired a majority stake in ‘Hospitality Resorts Ltd’ which owns a 96 room five star property at Goa. Subsequently, Kenilworth has taken the Goa property on operating lease from its subsidiary company with effect from 1^st October, 1999 and completely renovated and upgraded the same. While the Goa property commenced part operations in December 1999, the remaining rooms are expected to be operational in the near future. In 1998-99, Kenilworth reported a net profit of Rs. 12.4 million on an operating income of Rs. 142.6 million, with the Calcutta property accounting for most of the operating income and profits.