Fitch Ratings has assigned an "AA" rating to the expected issuance of approximately $222.8 million of series 2015A New Mexico Hospital Equipment Loan Council hospital revenue bonds on behalf of Albuquerque, N.M.-based Presbyterian Healthcare Services.
Fitch also affirmed the 'AA' ratings on the following revenue bonds issued by the New Mexico Hospital Equipment Loan Council for the benefit of PHS: $75 million of series 2012A hospital revenue bonds, $134.6 million of series 2009A hospital revenue bonds, $139.4 million of series 2008A hospital revenue bonds, and $200.1 million of series 2008B-D hospital revenue bonds.
Here are five things to know about the rating and PHS' outlook:
1. The rating assignment was supported by a number of factors, including the strategic benefits of PHS' vertically aligned healthcare delivery network (includes eight acute care facilities, a 600+ provider employed medical group and a 443,000-member health plan) which is further bolstered by a strong liquidity position.
2. The rating assignment was also supported by PHS' position as the market share leader in the Albuquerque metropolitan area
3. Fitch expects PHS to deliver "consistent financial results that are in line for an "AA" rated credit as it maximizes its vertically integrated delivery platform."
4. Fitch said while not anticipated, a material weakening in profitability over a prolonged period could pressure the rating.
5. PHS' outlook is stable.
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