Fitch Ratings recently affirmed the BB credit ratings of Brentwood, Tenn.-based LifePoint Hospitals, which covers roughly $1.7 billion of debt as of the last quarter.
Fitch analysts said LifePoint continues to have a good issuer default rating, secured bank facilities and senior unsecured notes because it has a solid balance sheet and good financial flexibility.
LifePoint had a gross debt leverage of 3.0x EBITDA as of March 31, 2012, which is among the lowest in the for-profit hospital sector and has grown its EBITDA through new transactions. Currently, LifePoint operates 55 acute-care hospitals, with 52 being the sole acute-care hospital in their respective market.
However, LifePoint did see sluggish growth in same-hospital adjusted admissions in the most recent quarter, but Fitch analysts said "weak organic volume trends" have persisted in the for-profit hospital sector since last year.
"LifePoint has consistently demonstrated a strong level of financial flexibility in recent years, and at current levels the financial and credit metrics provide significant headroom within the 'BB' rating category," according to the report. "Fitch believes that LifePoint's relatively stronger balance sheet, coupled with a track record of successfully managing sole provider hospitals in rural markets, help make the company an attractive acquirer in its preferred markets."
Fitch analysts said LifePoint continues to have a good issuer default rating, secured bank facilities and senior unsecured notes because it has a solid balance sheet and good financial flexibility.
LifePoint had a gross debt leverage of 3.0x EBITDA as of March 31, 2012, which is among the lowest in the for-profit hospital sector and has grown its EBITDA through new transactions. Currently, LifePoint operates 55 acute-care hospitals, with 52 being the sole acute-care hospital in their respective market.
However, LifePoint did see sluggish growth in same-hospital adjusted admissions in the most recent quarter, but Fitch analysts said "weak organic volume trends" have persisted in the for-profit hospital sector since last year.
"LifePoint has consistently demonstrated a strong level of financial flexibility in recent years, and at current levels the financial and credit metrics provide significant headroom within the 'BB' rating category," according to the report. "Fitch believes that LifePoint's relatively stronger balance sheet, coupled with a track record of successfully managing sole provider hospitals in rural markets, help make the company an attractive acquirer in its preferred markets."
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