Indianapolis-based IU Health still plans to push ahead with the sale of $755 million of bonds designed for capital projects and to address debt payments.
Fitch Ratings said June 22 it withdrew the rating on the system's 2023C bonds, as they were not sold.
IU Health said it had originally planned to spread the $755 million across three separate bond issues, but that had now been reduced to two lots. Ratings on all other bonds in the offering are unaffected and remain “AA.”
"Fitch is simply cleaning up their ratings to reflect that there are no 2023C bonds," IU Health told Becker's.
The 16-hospital system reported an 8 percent year-over-year operating-revenue increase for the first quarter, helping it record operating income of $45.1 million, compared with a $29.8 million loss for the same period in 2022.
IU Health recently received "AA" ratings on a series of bonds while having its outlook revised downward to stable.