Fitch Rates Adventist Sunbelt --FL-- Series 2004 Bonds 'A'.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 -- Fitch fitch: see polecat. assigns Individuals to whom property is, will, or may be transferred by conveyance, will, Descent and Distribution, or statute; assignees. The term assigns is often found in deeds; for example, "heirs, administrators, and assigns to denote the assignable nature of an 'A' rating to the approximately $50,000,000 Highlands County Health 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 , series 2004A (Adventist Health System/Sunbelt 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) auction reset securities. In conjunction with the series 2004A bonds, Adventist will also issue $50,000,000 Colorado Health Facilities Authority Hospital Revenue Bonds, series 2004B, and $50,000,000 Kansas Development Finance Authority hospital revenue bonds, series 2004C. Fitch will assign a long- and short-term rating to the series 2004B and 2004C bonds at a later date, based on the irrevocable Unable to cancel or recall; that which is unalterable or irreversible. IRREVOCABLE. That which cannot be revoked. 2. A will may at all times be revoked by the same person who made it, he having a disposing mind; but the moment the testator is direct pay letter of credit from SunTrust Bank. In addition, Fitch affirms the 'A' rating on Adventist Health System/Sunbelt's (Adventist) $1.9 billion of outstanding debt, listed below. Total outstanding debt after the series 2004 issuance will approximate $2.5 billion. The Rating Outlook has been revised to Positive from Stable. Bond proceeds will be used to fund various capital expenditures, establish a debt service reserve fund, and pay costs of issuance. The bonds will be sold the week of Sept. 28 via negotiation by Ziegler Capital Markets Group (2004B and 2004C bonds) and SunTrust (2004A bonds). Fitch also affirms the F1 short-term rating on the $68 million series 2003C bonds and the $85 million series 2002 bonds. The F1 rating is based on Adventist's strong internal liquidity position and management's procedures in place to access funds in case of an unremarketed put. Adventist has solid liquidity with $1.9 billion as of June 30, 2004. Of the $1.9 billion, $1.199 billion was invested in short duration high-grade fixed income and money market funds, which Fitch views as highly liquid. Fitch believes Adventist's treasury function is sophisticated with a dedicated staff of three full-time traders and a trading desk Trading Desk A desk where transactions for buying and selling securities occur. Trading desks can be found in most organizations (banks, finance companies, etc.) involved in trading investment instruments such as equities, fixed-income securities, futures, commodities and foreign in the hospital's headquarters. The 'A' rating is based on Adventist's improved financial profile, increased revenue diversity, and strong management practices. Since Fitch's initial rating in September 2003, Adventist has demonstrated continued improvement in profitability and cash flow that has led to a stronger liquidity position. Total revenue has increased at an average annual rate of 21.5% over the past three years due to volume growth, new facilities, and renegotiation of managed care contracts. Operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: has increased to 4.8% through the six months ended June 30, 2004 from 2.4% in fiscal 2000. Strong cash flow of $575 million in fiscal 2003 has led to solid debt service coverage of 3.0x and was 3.4x through the six months ended June 30, 2004. Six month fiscal 2004 financial performance is ahead of budget. Adventist's liquidity position has also improved to 203 days cash on hand and 82% cash to debt at June 30, 2004 from 133.9 days cash on hand and 54.5% cash to debt at fiscal year-end Fiscal Year-End The completion of a one-year, or 12-month, accounting period. Notes: The reason that a company's fiscal year often differs from the calendar year and does not close on Dec 31, is due to the nature of company's needs. 2000. The system has improved its revenue and profitability diversity with the Florida Hospital division constituting 36% of the system's EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become in 2003 from 53% in 1999. Fitch views Adventist's management practices favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. due to its success in integrating new facilities and improving operational performance in a short period. Financial disclosure and reporting capabilities are also one of the best in Fitch's portfolio. Other best management practices include asset liability management, managing the investment portfolio as a business unit, implementing a formal capital allocation model, and focus on quality initiatives. Remaining credit concerns are Adventist's above-average debt burden, future capital needs, competitive Denver market, and rising malpractice malpractice, failure to provide professional services with the skill usually exhibited by responsible and careful members of the profession, resulting in injury, loss, or damage to the party contracting those services. costs. Adventist's debt burden is somewhat high with MADS at 4.5% of total revenue and debt to capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. of 53.8%. However, debt ratios have improved since 1999. Most of Adventist's facilities are located in fast growing service areas, most notably the Orlando area. Management will be challenged with balancing the need for additional capacity due to increased demand. The Orlando region anticipates adding 500 beds over the next five years. Fitch is concerned about the competitive environment of the Denver market, which has caused weak financial performance at its Porter facility. In addition, Parker Hospital opened in February 2004 and is still generating operating losses operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. , although it is on budget. Fitch believes there will be more pressure in this market for reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. in plant due to the competitive nature. Adventist is exposed to the rising malpractice premium environment especially in Florida that has not only increased costs but has caused physician recruitment and retention challenges. Management has stated that Hurricane Frances This article is about the Atlantic hurricane of 2004; for other storms of the same name, see Hurricane Frances (disambiguation) Hurricane Frances was the sixth named storm, the fourth hurricane, and the third major hurricane of the 2004 Atlantic hurricane season. has caused the most damage to the Ormond Beach Ormond Beach, resort and residential city (1990 pop. 29,721), Volusia co., NE Fla., on Halifax River (a lagoon) and the Atlantic Ocean; inc. 1880. It was founded (1873) as a health resort and was the winter home of several famous people, including John D. area with one facility currently inoperable inoperable /in·op·er·a·ble/ (in-op´er-ah-b'l) not susceptible to treatment by surgery. in·op·er·a·ble adj. Unsuitable for a surgical procedure. . The facility, Florida Hospital Oceanside, is a 119 licensed bed rehabilitation rehabilitation: see physical therapy. facility, and Fitch expects the costs associated with the temporary replacement of patients to have a minimal impact on Adventist's financial performance. Although the facility is closed, another Adventist facility in the market, Florida Hospital Ormond Beach, has been able to accommodate the transfer of patients temporarily. Management will post a press release to its web site at www.ahss.org detailing the damage from Hurricane Frances. The Rating Outlook is Positive. Fitch believes Adventist's rating may be revised upward in the near term if the current trend in improvement is maintained. Headquartered in Winter Park, FL, Adventist operates 38 hospitals in 10 states. The Florida Hospital region constituted 35% of net 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 the system in fiscal 2003 and includes the largest hospital in the U.S., Florida Hospital Orlando Located in Orlando, Florida, Florida Hospital Orlando uses the latest technology to treat over 32,000 inpatients and 53,600 outpatients annually. This 800+ bed, acute-care community hospital also serves as a major tertiary facility for much of the Southeast. . Adventist covenants to provide bondholders with unaudited quarterly statements within 45 days of quarter-end and audited annual statements within 150 days of fiscal year-end. Disclosure to Fitch has been excellent, with the receipt of timely interim statements, including consolidated and consolidating statements. In addition, Adventist provides Fitch with annual updates. Outstanding Debt -- $81,375,000 Orange County, FL Health Facilities Authority hospital revenue bonds, series 1989A (Adventist Health System/Sunbelt, Inc.)(1)(2) 'A' -- $2,815,000 City of Punta Gorda Punta Gorda may refer to:
-- $310,000 Highlands County, FL Health Facilities Authority hospital revenue bonds, series 1989A (Adventist Health System/Sunbelt, Inc.)(1) 'A' -- $2,550,000 Highlands County, FL Health Facilities Authority hospital revenue bonds, series 1989B (Adventist Health System/Sunbelt, Inc.)(2) 'A' -- $3,500,000 Health and Educational Facilities Board of Town of Greeneville, TN hospital revenue bonds, series 1989A (Adventist Health System/Sunbelt, Inc.)(2) 'A' -- $5,355,000 Tarrant County, Texas Tarrant County is a county located in the U.S. state of Texas. As of 2000, the population was 1,446,219. Its county seat is Fort Worth6. Tarrant County is the second most populous county in the Dallas/Fort Worth Metroplex and contains its second largest principal city. Health Facilities Development Corp. hospital revenue bonds, series 1989A (Adventist Health System/Sunbelt, Inc.)(2) 'A' -- $10,840,000 City of Altamonte Springs Al·ta·monte Springs A city of east-central Florida, a residential suburb of Orlando. Population: 40,900. , FL Health Facilities Authority hospital revenue bonds, series 1989A (Adventist Health System/Sunbelt, Inc.)(1) 'A' -- $13,455,000 Pasco County, FL Health Facilities Authority hospital revenue bonds, series 1989A (Adventist Health System/Sunbelt, Inc.)(1)(2) 'A' --$4,485,000 Health and Educational Facilities Board of the Metropolitan Government of Nashville and Davidson County Davidson County is the name of two counties in the United States:
-- $5,460,000 Health and Educational Facilities Board of the City of Portland
-- $6,435,000 City of Punta Gorda, FL Health Facilities Authority hospital revenue bonds, series 1989A (Adventist Health System/Sunbelt, Inc.)(2) 'A' -- $33,000,000 Orange County, FL Health Facilities Authority hospital revenue bonds, series 1991A (Adventist Health System/Sunbelt, Inc.)(1) 'A' -- $36,000,000 Orange County, FL Health Facilities Authority hospital revenue bonds, series 1991B (Adventist Health System/Sunbelt, Inc.)(2) 'A' -- $4,395,000 The Health and Educational Facilities Board of the Metropolitan Government of Nashville and Davidson County, TN Hospital Revenue Bonds, series 1991 (Adventist Health System/Sunbelt, Inc.)(2) 'A' -- $38,220,000 Orange County, FL Health Facilities Authority hospital revenue bonds, series 1992 (Adventist Health System/Sunbelt, Inc.)(2) 'A' -- $1,875,000 Tarrant County, Texas Health Facilities Development Corporation hospital revenue bonds, series 1992 (Adventist Health System/Sunbelt, Inc.)(2) 'A' -- $10,505,000 City of Altamonte Springs, FL Health Facilities Authority Hospital revenue refunding bonds refunding bond A bond that is issued for the purpose of retiring an outstanding bond. Issuers refund bond issues to reduce financing costs, eliminate covenants, and alter maturities. See also crossover refunding bonds, prerefunding. , series 1993A (Adventist Health System/Sunbelt, Inc.)(3) 'A' --$62,125,000 City of Altamonte Springs, FL Health Facilities Authority hospital revenue bonds, series 1993B (Adventist Health System/Sunbelt, Inc.)(1) 'A' -- $8,900,000 Tarrant County, TX Health Facilities Development Corporation hospital revenue bonds, series 1993 (Adventist Health System/Sunbelt, Inc.)(2) 'A' -- $4,840,000 The Health and Educational Facilities Board of the Metropolitan Government of Nashville and Davidson County, TN hospital revenue bonds, series 1993 (Adventist Health System/Sunbelt, Inc.)(2) 'A' -- $34,930,000 Volusia County, FL Health Facilities Authority Hospital Facilities revenue refunding and improvement bonds, series 1994 (Memorial Health Systems Project)(1) 'A' -- $156,340,000 Orange County, FL Health Facilities Authority hospital revenue bonds, series 1995 (Adventist Health System/Sunbelt Obligated Group)(1) 'A' -- $6,455,000 Hospital Authority of Gordon County, GA Revenue Anticipation Certificates, series 1995 (Adventist Health System/Sunbelt Obligated Group)(3) 'A' -- $5,475,000 Tarrant County, TX Health Facilities Development Corporation hospital revenue bonds, series 1995 (Adventist Health System/Sunbelt Obligated Group)(3) 'A' -- $25,165,000 Copperas Cove Copperas Cove (kŏp`ərəs), town (1990 pop. 24,079), Coryell co., central Tex. In a farm and ranch area, the town owes much of its existence to U.S. Fort Hood, which it adjoins. , TX Health Facilities Development Corporation hospital revenue bonds, series 1995 (Adventist Health System/Sunbelt Obligated Group)(3) 'A' -- $4,590,000 The Health and Educational Facilities Board of the Metropolitan Government of Nashville and Davidson County, TN hospital revenue bonds, series 1995 (Adventist Health system/Sunbelt Obligated Group)(3) 'A' -- $16,265,000 Hospital Authority of the City of Smyrna GA Revenue Certificates (Emory-Adventist Hospital at Smyrna Project), series 1996(1) 'A' -- $44,235,000 Volusia County, FL Health Facilities Authority Hospital Facilities Revenue Bonds, series 1996 (Memorial Health Systems Project)(1) 'A' -- $101,190,000 Highlands County, FL Health Facilities Authority hospital revenue bonds, series 1998 (Adventist Health System/Sunbelt Obligated Group) 'A' -- $14,535,000 Tarrant County, TX Health Facilities Development Corporation hospital revenue bonds, series 1998 (Adventist Health System/Sunbelt Obligated Group) 'A' -- $3,690,000 The Health and Educational Facilities Board of the Metropolitan Government of Nashville and Davidson County, TN hospital revenue bonds, series 1998 (Adventist Health System/Sunbelt Obligated Group) 'A' -- $187,805,000 Illinois Development Finance Authority hospital revenue bonds, series 1999 (Adventist Health System/Sunbelt Obligated Group) 'A' -- $59,855,000 Illinois Development Finance Authority hospital revenue bonds, series 2000A(3) 'A' -- $69,530,000 Orange County, FL Health Facilities Authority hospital revenue bonds, series 2000 'A' -- $33,130,000 Tarrant County, TX Health Facilities Development Corp. hospital revenue bonds, series 2000 'A' -- $10,565,000 Health and Educational Facilities Board of the Metropolitan Government of Nashville and Davidson County, TN hospital revenue bonds, series 2000 'A' -- $60,000,000 Illinois Development Finance Authority hospital revenue bonds Periodic Auction Rate Securities (PARS), series 2000B(3) 'A' -- $60,000,000 Colorado Health Facilities Authority hospital revenue bonds (PorterCare Adventist Health System The Adventist Health System is the organisation responsible for overseeing matters related to Hospitals and other medical facilities, related to the Seventh-day Adventist Church within the United States. Project), series 2001 'A' -- $165,190,000 Highlands County, FL Health Facilities Authority hospital revenue bonds, series 2001A (Adventist Health System/Sunbelt Obligated Group) 'A' --$59,700,000 Highlands County FL Health Facilities Authority hospital revenue bonds, series 2001B (Adventist Health System/Sunbelt Obligated Group) Periodic Auction Reset Securities (PARS)(1) 'A' -- $160,000,000 Orange County, FL Health Facilities Authority hospital revenue bonds, series 2002 (Adventist Health System/Sunbelt Obligated Group) 'A' --$85,000,000 Highlands County Health Facilities Authority hospital revenue bonds, series 2002 (Adventist Health System/Sunbelt Obligated Group) Long-Term Adjustable Securities Extendable Rate (LASERS) 'A/F1' -- $75,000,000 Highlands County, FL Health Facilities Authority hospital revenue bonds, series 2002B (Adventist Health System/Sunbelt Obligated Group) 'A' -- $68,015,000 Highlands County Health Facilities Authority hospital revenue bonds, series 2003B (Adventist Health System/Sunbelt Obligated Group)(4) 'AA-/F1+' -- $68,095,000 Highlands County Health Facilities Authority hospital revenue bonds, series 2003C (Adventist Health System/Sunbelt Obligated Group) 'A/F1' -- $135,000,000 Highlands County Health Facilities Authority hospital revenue bonds, series 2003D (Adventist Health System/Sunbelt Obligated Group) 'A' (1) Insured by Ambac Assurance Corp., whose insurer financial strength is rated 'AAA' by 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. . (2) Insured by Financial Security Assurance, Inc., whose insurer financial strength is rated 'AAA' by Fitch. (3) Insured by 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 Insurance Corp., whose insurer financial strength is rated 'AAA' by Fitch. (4) Rating based on a letter of credit provided by SunTrust Bank. |
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