S&P Global Ratings has assigned a "BB+" long-term rating to Rexburg, Idaho-based Madison Memorial Hospital's $45 million of series 2016 revenue refunding bonds, as well as its series 2006 revenue certificates of participation.
"We assessed MMH's enterprise profile as vulnerable, due in part to a high concentration of inpatient admissions among the top 10 physicians," said S&P analyst Patrick Zagar.
"Concurrently, we assessed MMH's financial profile as strong due in part to operating margins and debt service coverage that both compare favorably to similarly rated peers," he added. "However, we believe the hospital's financial profile is tempered by light unrestricted reserves, especially when compared to long-term debt. We consider MMH to have a small revenue base, with net patient revenue of $67 million in fiscal 2015."
The outlook is stable.