Fitch Ratings has affirmed an "A" rating for approximately $109.7 million in New Hampshire Health and Education Facilities Authority bonds issued on behalf of Wentworth-Douglass Hospital in Dover, N.H.
Key rating drivers include the hospital's strong operating results. WDH has averaged a 3.5 percent operating margin and a 12.3 percent operating EBITDA during the last four audited years. As of June 30, the hospital also had a solid balance sheet, with $218.1 million in cash and unrestricted investment — 66 percent greater than year-end 2010.
Additionally, the hospital's leverage remains elevated, with six-month 2014 interim results showing maximum annual debt service as a percentage of revenue at 4.7 percent. Coverage was also solid at 3.9(x). Furthermore, WDH has actively developed strategic affiliations, such as its clinical affiliation agreement with Massachusetts General Hospital in Boston and its pediatric partnership with Children's Hospital at Dartmouth in Lebanon, N.H. These relationships are key drivers of WDH's strong credit profile, according to the ratings service.