Fitch Ratings has assigned an "A" rating to approximately $135.5 million of series 2014B and series 2014C variable rate revenue bonds, which are expected to be issued on behalf of Northeast Georgia Health System in Gainesville.
NGHS include a 557-bed acute-care hospital, a physicians group with more than 140 physicians, a health plan and two skilled nursing facilities.
The rating assignment was supported by a number of factors, including NGHS' profitability. The system's operating margin averaged 6.6 percent between fiscal year 2009 and 2013.
The rating assignment was also supported by the system's strong market position. NGHS has a dominant 80.8 percent market share in its primary service area, and no other hospital in its service area has a market share greater than 3 percent.
The system also faces some challenges, which were considered for the rating assignment, such as having a high debt burden.
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