Amendment: Fitch Rates Ascension Health's Sub Bonds 'AA-/F1+'; Affirms Outstanding Debt at 'AA/F1+'.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- (This amended release reflects changes in bond descriptions and par amounts that occurred subsequent to the Jan. 7, 2005 release.) Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has assigned a long-term rating of 'AA-' to Ascension Ascension, in Christianity Ascension, name usually given to the departure of Jesus from earth as related in the Gospels according to Mark (16) and Luke (24) and in Acts 1.1–11. Health's $612 million 2005 subordinate bonds listed below. Fitch has also assigned an 'F1+' short-term rating to the series 2005 issues listed below. In addition, Fitch affirms approximately $3.6 billion of outstanding debt at 'AA' or 'AA/F1+', also listed below. The Rating Outlook is Stable. The rating differential reflects the subordinate structure of the series 2005 bonds. Through a supplemental master trust indenture An agreement declaring the benefits and obligations of two or more parties, often applicable in the context of Bankruptcy and bond trading. The term indenture primarily describes secured contracts and has several applications in U.S. law. , Ascension has granted a revenue pledge of its obligated ob·li·gate tr.v. ob·li·gat·ed, ob·li·gat·ing, ob·li·gates 1. To bind, compel, or constrain by a social, legal, or moral tie. See Synonyms at force. 2. To cause to be grateful or indebted; oblige. group members, which constitute over 95% of revenues and over 97% of assets of the consolidated organization, to existing bondholders. As per a subordinate master trust indenture the subordinate bonds are joint and several unsecured obligations of the obligated group. Proceeds of the series 2005 subordinate bonds will be used to reimburse Ascension for past qualified capital expenditures, which will allow Ascension to use excess operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. to prefund approximately $650 million of the current $1.3 billion in unfunded pension liability. The bonds are expected to price the week of Jan. 10 through negotiation by Citigroup and Morgan Stanley  To comply with Wikipedia's , the introduction of this article needs a complete rewrite. . Ascension's ratings are supported by its geographic diversity and breadth of operations, industry-leading management practices, modest debt burden even with the addition of the subordinate debt See Junior debt. , and improving profitability. Through the 2005 bond issuance, management has effectively addressed its sizeable unfunded pension liability while preserving existing bondholders' standing, which Fitch views favorably. The 'AA-' for the series 2005 subordinate bonds further reflects Ascension's strong financial performance. Fitch expects that senior/subordinate debt structures may increase in the health care sector. Fitch also believes that achievement of 'AA' category subordinate health care debt will be rare. Ascension's size has allowed the organization to continue to realize benefits associated with supply chain management, leverage with payors and vendors, and standardized standardized pertaining to data that have been submitted to standardization procedures. standardized morbidity rate see morbidity rate. standardized mortality rate see mortality rate. practices. Management believes that additional system efficiencies are possible and has initiated programs aimed at quality, revenue cycle management, risk management, and consolidation of information technology. Additionally, management has successfully integrated the Carondelet Health System into the system, which has brought Ascension into some favorable markets as a strong player, such as Tucson and Kansas City Kansas City, two adjacent cities of the same name, one (1990 pop. 149,767), seat of Wyandotte co., NE Kansas (inc. 1859), the other (1990 pop. 435,146), Clay, Jackson, and Platte counties, NW Mo. (inc. 1850). . Favorable managed care reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. and the effects of certain expense and revenues initiatives have lead to overall improvement in profitability. The operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: improved to 2.5% in fiscal 2004 from 1.8% in fiscal 2003, and through the three months ended Sept. 30, 2004 the operating margin was 2.9%. Maximum annual debt service (MADS) coverage and MADS as a percent of revenue for senior debt was 5.9 times (x) and 1.9%, respectively, and 5x and 2.3%, for subordinate debt indicating a modest debt burden. Ongoing concerns include continuing operating challenges in several markets, ongoing labor shortages A Labor shortage is an economic condition in which there are insufficient qualified candidates (employees) to fill the market-place demands for employment at any price. This condition is sometimes referred to by Economists as "an insufficiency in the labor force. throughout the nation, and future revenue constraints from Medicare, Medicaid, and managed care. However, Fitch believes that Ascension's strong liquidity position, future system efficiencies, and its geographic diversity, should mitigate these risks over the medium to long term and lead to stable operating profitability going forward. Ascension Health Ascension Health is a non-profit company that operates a network of hospitals and related health facilities in the United States. It is the nation's largest Catholic and largest non-profit health system[1]. , the nation's largest not-for-profit Catholic health care system, had total operating revenue operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. of $10 billion in fiscal 2004. The credit group consists of 73 health corporations, inclusive of inclusive of prep. Taking into consideration or account; including. 63 hospitals, in 17 states and the District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . Fitch considers Ascension's disclosure practices a model for the industry. In addition to a covenant to provide quarterly financial information, Ascension maintains a detailed web site, www.ascensionhealth.org, complete with up-to-date financial data, and an employee dedicated specifically to investor relations Investor relations The process by which the corporation communicates with its investors. . Series 2005 bonds The following bonds are rated 'AA-' by Fitch: -- $10,000,000 Alabama Special Care Facilities Financing Authority of Birmingham Revenue Bonds (Ascension Health Subordinate Credit Group) Series 2005A1; -- $3,080,000 Alabama Special Care Facilities Financing Authority of Birmingham Revenue Bonds (Ascension Health Subordinate Credit Group) Series 2005A2; -- $47,590,000 Indiana Health Facility Financing Authority Revenue Bonds (Ascension Health Subordinate Credit Group) Series 2005A3; -- $15,530,000 Indiana Health Facility Financing Authority Revenue Bonds (Ascension Health Subordinate Credit Group) Series 2005A4; -- $37,725,000 Indiana Health Facility Financing Authority Revenue Bonds (Ascension Health Subordinate Credit Group) Series 2005A5; -- $28,215,000 Indiana Health Facility Financing Authority Revenue Bonds (Ascension Health Subordinate Credit Group) Series 2005A6; -- $56,285,000 Indiana Health Facility Financing Authority Revenue Bonds (Ascension Health Subordinate Credit Group) Series 2005A7; -- $56,025,000 Indiana Health Facility Financing Authority Revenue Bonds (Ascension Health Subordinate Credit Group) Series 2005A8; -- $37,305,000 Indiana Health Facility Financing Authority Revenue Bonds (Ascension Health Subordinate Credit Group) Series 2005A9; -- $37,200,000 Indiana Health Facility Financing Authority Revenue Bonds (Ascension Health Subordinate Credit Group) Series 2005A10; -- $18,650,000 Michigan State Hospital Finance Authority Revenue Bonds (Ascension Health Subordinate Credit Group) Series 2005A1; -- $18,600,000 Michigan State Hospital Finance Authority Revenue Bonds (Ascension Health Subordinate Credit Group) Series 2005A2; -- $55,900,000 Michigan State Hospital Finance Authority Revenue Bonds (Ascension Health Subordinate Credit Group) Series 2005A3; -- $55,825,000 Michigan State Hospital Finance Authority Revenue Bonds (Ascension Health Subordinate Credit Group) Series 2005A4. The following bonds are rated 'AA-/F1+' (the short-term rating is based on the internal liquidity of Ascension): -- $67,415,000 Indiana Health Facility Financing Authority Revenue Bonds (Ascension Health Subordinate Credit Group) Series 2005A1; -- $66,890,000 Indiana Health Facility Financing Authority Revenue Bonds (Ascension Health Subordinate Credit Group) Series 2005A2. Outstanding debt: -- $191,850,000 Escambia County Escambia County is the name of two counties in the United States of America:
-- $525,400,000 Michigan State Hospital Finance Authority (Ascension Health Credit Group), series 2003B; -- $295,375,000 Missouri Health and Education Facilities Authority (Ascension Health Credit Group), series 2003C; -- $24,700,000 Idaho Health Facilities Authority (Ascension Health Credit Group), series 2003D; -- $498,475,000 Indiana Health Facilities Financing Authority (Ascension Health Credit Group), series 2003E; -- $49,300,000 Jacksonville Health Facilities Authority revenue bonds (Ascension Health Credit Group), series 2002A. -- $47,205,000 Michigan State Hospital Finance Authority (Ascension Health Credit Group), series 2002B; -- $41,105,000 Escambia County Health Facilities Authority (Ascension Health Credit Group), series 2002C; -- $62,925,000 Wisconsin Health and Educational Facilities Authority auction-rate securities (Ascension Health Credit Group), series 2002D; -- $37,000,000 Indiana Health Facilities Financing Authority auction-rate notes (Ascension Health Credit Group), series 2002E; -- $100,825,000 Indiana Health Facilities Financing Authority revenue bonds (Ascension Health Credit Group), series 2002F; -- $100,000,000 Indiana Health Facilities Financing Authority revenue bonds (Ascension Health Credit Group), series 2001A-1; -- $100,000,000 Indiana Health Facilities Financing Authority revenue bonds (Ascension Health Credit Group), series 2001A-2; -- $100,000,000 Indiana Health Facilities Financing Authority revenue bonds (Ascension Health Credit Group), series 2001A-3; -- $100,800,000 Indiana Health Facilities Financing Authority revenue bonds (Ascension Health Credit Group), series 2001A-4; -- $181,500,000 The Health and Educational Facilities Board of The Metropolitan Government of Nashville and Davidson County, Tennessee Davidson County is a county located in the U.S. state of Tennessee. As of 2000, the population was 569,891. The 2005 Census Estimate placed the population at 607,413.[1] Its county seat is Nashville6. revenue bonds (Ascension Health Credit Group), series 2001B; -- $29,300,000 Illinois Development Finance Authority variable-rate revenue bonds (St. Vincent de Paul Vin·cent de Paul , Saint 1581-1660. French ecclesiastic who founded the Congregation of the Mission (1625) and the Daughters of Charity (1633). Center Project), series 2000A; -- $37,215,000 Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. Industrial, Tourist, Educational, Medical, and Environmental Control Facilities Financing Authority revenue bonds (Hospital De La Concepcion Project), series 2000A; -- $127,000,000 Alabama Special Care Facilities Financing Authority of Mobile variable-rate revenue bonds (Ascension Health Credit Group), series 1999B; -- $44,500,000 State of Connecticut Health and Educational Facilities Authority variable-rate revenue bonds (Ascension Health Credit Group), series 1999B; -- $565,415,000 Michigan State Hospital Finance Authority revenue bonds (Ascension Health Credit Group), series 1999A (insured: MBIA MBIA Montana Building Industry Association MBIA Municipal Bond Insurance Association MBIA Michigan Boating Industries Association MBIA Municipal Bond Investors Assurance MBIA Massachusetts Brain Injury Association MBIA Maryland Business Incubation Association ); -- $340,000,000 Michigan State Hospital Finance Authority variable-rate revenue bonds (Ascension Health Credit Group), series 1999B; -- $16,865,000 City of Pottsville Hospital Authority revenue bonds (Ascension Health Credit Group), series 1999A (insured: Ambac); -- $267,865,000 Travis County Health Facilities Development Corporation revenue bonds (Ascension Health Credit Group), series 1999A (insured: Ambac and MBIA); -- $20,470,000 Waco Health Facilities Development Corporation revenue bonds (Ascension Health Credit Group), series 1999A; -- $40,285,000 Wisconsin Health and Educational Facilities Authority revenue bonds (Ascension Health Credit Group), series 1999A (insured: MBIA); -- $24,665,000 Maryland Health and Higher Educational Facilities Authority hospital revenue bonds Hospital revenue bond A bond issued to finance construction of a hospital by a municipal or state agency. hospital revenue bond Tax-exempt debt issued by a city, county, state, or hospital authority with debt service guaranteed by hospital (Charity Obligated Group), series 1999A; -- $14,125,000 Schuylkill County Industrial Development Authority, Pennsylvania revenue bonds (Charity Obligated Group), series 1999A; -- $100,000,000 Indiana Health Facilities Financing Authority (Ascension Health Credit Group) variable-rate revenue bonds, series 1999B; -- $126,555,000 Indiana Health Facilities Financing Authority (Charity Obligated Group) revenue bonds, series 1999D. |
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