Money Talk

Karen Minich-Pourshadi, for HealthLeaders Media , April 14, 2011
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Who’s up and who’s down 
Children’s Hospital of the King’s Daughters, Norfolk, VA
Rating: A3
Outlook: Positive
Affected debt: $78 million
Agency: Moody’s Investors Service

Remarks: Moody’s has affirmed the A3 underlying rating on $78 million of series 2006 revenue bonds issued by the Virginia Small Business Financing Authority. The outlook is revised to positive from stable. The rating is based on CHKD’s strong market position as the only independent children’s hospital in the state of Virginia, close alignment with virtually all of the pediatric specialists in the Hampton Roads region, recently improved and sustained operating margins, and strong balance sheet with good liquidity and moderate debt position.

Concord (NH) Hospital
Rating: A2
Outlook: Stable
Affected debt: $50 million
Agency: Moody’s Investors Service

Remarks: Moody’s has assigned an A2 debt rating to $50 million of series 2011 fixed-rate revenue bonds to be issued by the New Hampshire Health and Education Facilities Authority. The outlook is stable. The upgrade to A2 from A3 and the stable outlook on outstanding debt reflects the overall improvement in financial performance in recent years, increase in absolute liquidity, deleveraged debt position, and dominant market position in the primary service area. The factors are offset by the 20% increase in leverage with this financing and a sizable underfunded pension position relative to the outstanding pro forma direct debt.

Central Florida Health Alliance,
Leesburg, FL
Rating: BBB+
Outlook: Stable
Affected debt: $22 million
Agency: Standard & Poor’s Ratings Services

Remarks: S&P revised its rating outlook to stable from negative on Leesburg, FL’s series 2002 and 2003 hospital revenue bonds, and affirmed the BBB+ rating. S&P also assigned its BBB+ long-term rating to the series 2011 bonds issued by Leesburg for CFHA. The revised outlook reflects S&P’s assessment of CFHA’s improved operating results and a solid business position and adequate balance sheet offset by a weaker income statement that management is working to correct.


Karen Minich-Pourshadi is a Senior Editor with HealthLeaders Media.

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