Fitch Ratings has affirmed a "BBB-" rating for $29.3 million in health facilities revenue bonds issued on behalf of Wright Memorial Hospital in Trenton, Mo.
The rating affirmation is partly based on the hospital's affiliation with Saint Luke's Health System, based in Kansas City, Mo. The agreement offers many benefits to WMH, such as a guarantee of lease payments of no less than debt service on the hospital's bonds through 2023, according to Fitch. The hospital has also demonstrated steady operating performance. WMH had a 11.5 percent operating EBITDA margin in 2013.
The hospital's liquidity remains light, with $3.8 million in total unrestricted cash and investments as of Dec. 31, the end of fiscal year 2013 — which is equal to 50.6 days of cash on hand and 12.9 percent cash to debt. Although these measures were improved slightly compared to the previous year, the hospital's liquidity metrics are still below Fitch's "BBB" category median levels.
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