JCR Eurasia Rating has affirmed the credit ratings of Dünya Göz Hastanesi Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries and the Cash Flows Relating to the Planned Bond Issues as BBB-(Trk)/Stable’ on the Long Term National Scale and as BB+/Stable o

JCR Eurasia Rating has evaluated “Dünya Göz Hastanesi Sanayi ve Ticaret Anonim Şirketi and Its Subsidiaries” in an investment-grade category on a national and international level and affirmed ratings of ‘BBB- (Trk)’ on the Long Term National Scale; ‘BB+’ on the Long Term International Foreign Currency Scale and as ‘B’ on the Short Term International Foreign Currency Scale. Other notes and details of the ratings are given in the table below.

Long Term International Foreign Currency

:

BB+ / (Stable Outlook)

Long Term International Local Currency

:

BBB- / (Stable Outlook)

Long Term National Local Rating

:

BBB- (Trk) / (Stable Outlook)

Short Term International Foreign Currency

:

B / (Stable Outlook)

Short Term International Local Currency

:

A-3 / (Stable Outlook)

Short Term National Local Rating

:

A-3 (Trk) / (Stable Outlook)

Sponsor Support

:

2

Stand Alone

:

B

Dünya Göz Hastanesi Sanayi ve Ticaret Anonim Şirketi, initially founded under the title “Levent Sağlık Hizmetleri Sanayi ve Ticaret A.Ş.” in Istanbul in 1995, provides treatments in all eye-related or eye-contour-related health problems, focusing on major treatments for cataracts, retina, glaucoma, cornea, strabismus and oculoplastic surgery. Dünyagöz Group provides services with specialist clinicians, experienced healthcare personnel and facilities utilizing high-tech medical equipment throughout Turkey via 19 eye-care branches, 240 sub-diagnosis of various fields in 11 cities as well as in 4 clinics in Germany, England and Georgia. The Company has turned into one of the leading private healthcare service providers in Turkey and continued its rapid growth in 2015, with plans to open additional hospitals 4 hospitals domestically and 2 hospitals abroad including in Azerbaijan and the Netherlands which are nearing completion and enlarge its market share and current capacity.

Dünyagöz Group has not yet reached the projected profitability level- expected to reach in 2016- due to generate internal equity considering the utilization of primarily external sources in the funding of the expansion in asset size and sales leading to financial and operational expenses and CAPEX. Taking into consideration the relatively low levels of profitability and highly leveraged balance sheet composition, the Company is expected to meet the financial obligations and liabilities associated with the bond issue principally via re-financing through its capability to access long-term funding resources. The continuation of the state’s effective role in the delivery of healthcare services, the increase in per capita healthcare spending in line with economic and population growth, the emergence of Turkey as a regional medical tourism destination and the corresponding contribution to the international patient numbers, and a widened service network along with the high levels of asset quality supported via technology intensive investments constitute the major factors that will drive the Company’s growth and development in the upcoming period. Although profitability indicators continue to fluctuate, predictable revenue streams from the Group's new hospitals and funding mix with a tendency of lengthening terms have been effective in the affirmation of the ratings on the Short and Long Term National scales.

The Company’s outlook has been affirmed as ‘Stable’ on the long and short term perspectives with the opinion that the budget and projections, including additional obligations from the planned bond issue, are based on assumptions in accordance with the developments in the markets and thus indicate a high realization capability and that the stream of cash flows will be realized in line with the principal and interest payments in terms of amount and time schedules. In addition, the experienced shareholder and management team, innovative applications within the scope of industry-leading R & D, balance sheet composition based on a wide variety of group companies and operating sectors will strengthen the Company against internal and external shocks.

Taking into account the fiscal strength of the real person qualified shareholders “Eray Kapıcıoğlu” and “Kapıcıoğlu Holding A.Ş.”, the scale of operating activity and the contribution that will be made to its development by the planned growth and the organizational structure, operational support and sector expansion, the ‘Sponsor Support’ grade of “Dünya Göz Hastaneleri Group” has been assigned as (2). In addition, taking into consideration its ability to manage the incurred risks on its balance sheet, internal equity generation capacity, opening of new hospitals, rising and increasingly diverse qualified customer portfolio and current capitalization level, the Company’s ‘Stand Alone’ grade has been assigned as (B).

For more information regarding the rating results, you may visit our internet site http://www.jcrer.com.tr or contact our analyst Mr. Orkun INAN.

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