Fitch Ratings has assigned an "A" rating to the expected issuance of approximately $85.4 million of series 2015A revenue refunding bonds on behalf of Reid Hospital & Health Care Services in Richmond, Ind.
The series 2015A bonds are expected to be issued through negotiated sale the week of Feb. 9. The proceeds of the bonds will be used to refund the outstanding series 2009 bonds for savings and pay for certain costs of issuance.
The rating assignment was supported by a number of factors, including Reid's improved fiscal 2014 operating profitability. Reid's operating margin in fiscal 2014 (unaudited) was 1.2 percent.
The rating assignment was also supported by Reid's leading market position. Reid has a dominant market position of about 80 percent in its primary service area, and no other facility in its service area has a market share greater than 5 percent. Reid is designated as a sole community provider.
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