Fitch Ratings has affirmed the "AA-" rating on approximately $289 million of series 2008, series 2009 and series 2011 revenue bonds issued on behalf of Miami Valley Hospital in Dayton, Ohio, a part of MedAmerica Health System.
Additionally, Fitch affirmed the 'AA-' bank bond ratings for series 2008B, 2008C, 2011B and 2011C bonds. MedAmerica also has $125.6 million in series 2012A and 2012B private placements outstanding, which Fitch incorporated in its review.
The rating affirmation was supported by a number of factors, including MedAmerica's improving liquidity and solid operating cash flow, which reflects the benefits of Medicaid expansion in Ohio and continued cost management initiatives.
MedAmerica also faces some challenges, which were considered for the rating action, such as an elevated debt burden.
Fitch said it expects MedAmerica to remain financially strong "as it continues effective cost management practices and leverages (its manager) Premier Health Partner's overall operating platform to drive further efficiencies."
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