After catching COVID-19, the South African Private Healthcare Sector has one foot in the recovery room
15 March 2021 – GCR Ratings (“GCR”) has published Industry Research on the impact of the COVID-19 pandemic on the South African Private Healthcare Sector, and GCR’s expectations of the sector’s performance over the short to medium term.
The underperformance of the South African (SA) private healthcare sector during 2020 was a direct result of the COVID-19 pandemic, which has exacerbated the lack of growth in private medical aid memberships.
With the timing and efficacy of the vaccine rollout to the general population still uncertain, combined with predictions of a third wave of the virus, the short to medium term prospects of the sector remain somewhat uncertain.
Notwithstanding this, GCR expects an improved financial performance in FY2021, more stable debt levels, as well as some improvement in credit protection metrics.
In addition, GCR has not downgraded the healthcare sector GCR Risk Score due to our belief that the inherent and fundamental stability of the sector remains unchanged.
GCR will periodically provide insights on key sectors/industries across different territories in which various rated entities are domiciled, encompassing changes in the operating environment, performance trends and its view of the impact of an evolution in market dynamics on the credit risk profiles of rated entities in selected industries.
Senior Analyst: Corporate & Public Sector
+27 11 784 1771
Sector Head: Corporate Ratings
+27 11 784 1771
Related Criteria and Research
GCR Country Risk Scores, November 2020
GCR Corporate Sector Risk Scores, updated July 2020
CREDIT RATINGS ISSUED AND RESEARCH PUBLICATIONS PUBLISHED BY GCR, ARE GCR’S OPINIONS, AS AT THE DATE OF ISSUE OR PUBLICATION THEREOF, OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. GCR DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL AND/OR FINANCIAL OBLIGATIONS AS THEY BECOME DUE. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: FRAUD, MARKET LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND GCR’S OPINIONS INCLUDED IN GCR’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. CREDIT RATINGS AND GCR’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND GCR’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL OR HOLD PARTICULAR SECURITIES. NEITHER GCR’S CREDIT RATINGS, NOR ITS PUBLICATIONS, COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. GCR ISSUES ITS CREDIT RATINGS AND PUBLISHES GCR’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING OR SALE.
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