Fitch Ratings has assigned a "BBB+" rating to approximately $55.8 million of series 2014A fixed rate revenue bonds issued by the Indiana Finance Authority on behalf of Shelbyville, Ill.-based Major Hospital.
The rating assignment was based on a number of factors, including 61-bed Major Hospital's affiliations with long-term care providers and its good market share position.
Since June, the hospital has entered into 31 lease agreements with long-term care providers, which is expected to result in $20 million in net revenue annually. In addition, the agreements with long-term care providers should help strengthen Major Hospital's balance sheet over the next few years.
Major Hospital controls 61.5 percent of the market share in its primary service area. Although the population of the hospital's service area is small, that limits competitive threats to the hospital.
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