Fitch Ratings has affirmed the "A-" rating assigned to $84.8 million of series 2010 revenue bonds issued through the Louisiana Public Facilities Authority on behalf of Lafayette (La.) General Medical Center.
The rating affirmation was supported by a number of factors, including the hospital's growing market footprint. LGMC has added two new hospitals and two clinical affiliates since Fitch's last rating action in 2013 and increased its primary and secondary market share from 19.5 percent in 2013 to 26.4 percent in 2014, according to Fitch.
The hospital's stable financial profile was also considered for the rating affirmation. After reporting a negative operating margin in fiscal year 2009, LGMC's debt service has been steady, and its operating margin has stayed above Fitch's "A" category median of 2.5 percent.
LGMC's rating outlook is stable. Despite its negative operating budget in fiscal 2009, Fitch expects the hospital to sustain its current operating performance and debt coverage.