Daughters of Charity Natl Hlth Rtgs Asgnd/Raisd by S&P.NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 9/9/97 --Standard & Poor's today assigned its double-'A'-plus rating to the $209.9 million fixed-rated 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 series 1997A & B and $245.04 million long-rate hopital revenue bonds series 1997D, issued by various issuers for the Daughters of Charity National Health System Inc. Also, Standard & Poor's raised its rating on the outstanding fixed-rate hospital revenue bonds issued by various issuers for Daughters of Charity to double-'A'-plus from double-'A'. The ratings and upgrade reflect Daughters of Charity's consistently robust earnings and cash flow, strong and growing liquidity, and successful integrated delivery network formation. Additional credit strengths include very broad geographic dispersion dispersion, in chemistry dispersion, in chemistry, mixture in which fine particles of one substance are scattered throughout another substance. A dispersion is classed as a suspension, colloid, or solution. ; a highly effective, decentralized de·cen·tral·ize v. de·cen·tral·ized, de·cen·tral·iz·ing, de·cen·tral·iz·es v.tr. 1. To distribute the administrative functions or powers of (a central authority) among several local authorities. management structure; and excellent internal controls and financial policies. Although the system operates mostly in competitive health care markets, it has demonstrated an ability to successfully integrate new members, and a willingness to dispose underperforming assets underperforming asset An asset that earns a lower rate of return than it would be capable of earning if it were properly used. A firm with underperforming assets is a prime target for takeover. Compare nonperforming asset. . These favorable organizational aspects are derived from the system's community-based network strategic focus and superior national and regional administrative support. At the closing of these and a variety of other financings, two of the Daughters of Charity's strategic partners will become members of an expanded 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, known as the "Charity Obligated Group." Through the execution of legal participation agreements, health care organizations not directly under the control of the obligated group will become jointly and severally Jointly and Severally 1. A legal term describing a partnership in which individual decisions are bound to all parties involved and thus undivided. 2. A term used in underwriting syndicates to refer to the distinct responsibility of individual companies to sell a certain liable for each other's debt. While this structure may appear to place the obligated group's financial profile at risk, appropriate safeguards (such as a legal covenant to maintain available cash to cover one year's debt service) are offered by each participating system. When combined on a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma basis, the Charity Obligated Group is a large and diverse health system, including 26 hospitals in 18 markets (12 states), $5.1 billion total assets, and $3.6 billion annual net revenues. Combined financial strength on a pro forma basis for fiscal 1996 is impressive, evidenced by $333 million net earnings, 5.7 times (x) maximum debt service coverage, and $1.7 billion cash and investments. Even with the expected issuance of $230 million of new money bonds, debt levels remain very manageable. Pro forma maximum debt service only amounts to 2.9% of revenues and total debt comprises about 34% of capitalization. Unaudited combined financial operations for fiscal 1997 are expected to be comparable to 1996. Additionally, the combined balance sheet will exhibit strengthened liquidity and healthy net asset growth. OUTLOOK: STABLE The stable outlook anticipates a continuing trend of strong financial performance, cash accumulation, and strengthening local market positions as a result of emphasized community-based network development, Standard & Poor's said. -- CreditWire CONTACT: Paul P Rizzo, 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 (1) 212-208-1340 Robert Fuller
Robert Fuller (born Robert Welch , New York (1) 212-208-1807 For more information on criteria or subscriptions: http://www.ratings.standardpoor.com |
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