Moody's Investors Service and Fitch Ratings have rated $282.9 million of New Lenox, Ill.-based Silver Cross Hospital and Medical Center's proposed series 2015C fixed rate revenue bonds.
Moody's assigned a "Baa1" rating, while Fitch assigned a "BBB+" rating.
Moody's analysis for the rating assignment reflects the financial performance of the Silver Cross Health System and affiliates.
The "Baa1" rating assignment was supported by a number of factors, including the system's leading market position in a favorable service area, high multi-year volume and market share growth, successful partnership strategies that mitigate risks of operating as an independent hospital in a consolidating market, a track record of strong operating cash flow margins, and limited capital needs following the opening of a new hospital in 2012, according to Moody's.
Silver Cross Hospital and Medical Center faces some challenges, which Moody's considered for its rating assignment, such as its very high leverage, driving unfavorable debt metrics.
Fitch's rating was supported by Silver Cross Hospital and Medical Center's continued strong cash flow and successful partnerships with other providers. Challenges considered for the rating included the system's high debt burden.
Fitch said it expects Silver Cross Hospital and Medical Center to "maintain strong cash flow in order to service its very high debt burden."
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