Fitch Ratings has assigned an "AA" rating to Seattle Children's Hospital's series 2015A revenue bonds. The proceeds from the bonds will provide approximately $54 million for future capital expenditures and $46 million for reimbursement of prior capital expenditures, according to Fitch.
The rating assignment was supported by a number of factors, including 323-bed Seattle Children's Hospital's strong financial profile and solid market position. The hospital is the only freestanding children's hospital in Washington and maintains the leading market position in the state.
The hospital plans to invest in information technology, additional ambulatory clinics and another medical building, with capital spending projected to be $232.7 million in fiscal 2015, $93 million in fiscal 2016 and $102 million in fiscal 2017, according to Fitch. The capital expenditures that are not funded by the series 2015A bond proceeds will be funded from operating cash flow and philanthropy.
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