Fitch Ratings has assigned an "AA-" rating to approximately $60 million of series 2014A/B/C revenue bonds issued to Traverse City, Mich.-based Munson Healthcare by the Grand Traverse County Hospital Finance Authority.
Fitch also affirmed the "AA-" rating on Munson's $76 million of series 2011A revenue refunding bonds and $25 million of series 2011B variable rate revenue refunding bonds.
The rating assignment was based on a number of factors, including the system's robust operating profitability. Munson has recorded an average operating EBITDA of 10.8 percent since 2010 and 11 percent in fiscal year 2014.
The rating assignment was also supported by the system's light pro forma debt burden, strong liquidity and 88 percent leading market share position in its primary service area.
Going forward, Fitch predicts Munson will need to sustain its financial profile and leading market share position while also successfully completing its new cancer center and integrating two hospitals.