Fitch Upgr Cape Canaveral Hospital District, FL Bonds To `A+'.Business Editors & Analysts NEW YORK--(BUSINESS WIRE)--Aug. 21, 2001 Fitch has upgraded approximately $38 million of bonds issued by Cape Canaveral Cape Canaveral (kənăv`ərəl), low, sandy promontory extending E into the Atlantic Ocean from a barrier island, E Fla., separated from Merritt Island by the Banana River, a lagoon; named (1963) Cape Kennedy in memory of President John Hospital District to `A+' from `BBB'. The bonds are listed at the end of the press release. The upgrade is based on the change in legal structure to a joint and several revenue pledge of the 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, consisting of Health First Inc., Holmes Regional Medical Center and Cape Canaveral Hospital. Health First is an integrated delivery system integrated delivery system Integrated provider Medical practice A coordinated health care system formed by physician groups and hospitals which ↑ efficiency and ↓ redundancy in providing health care; IDSs coordinate delivery of a broad range of health located in Brevard County, Florida Brevard County is a county located in the U.S. state of Florida, along the coast of the Atlantic Ocean. As of 2007 U.S. Census Bureau estimates, the population is 534,359[1]. Because of the presence of the John F. and includes Holmes Regional Medical Center, Cape Canaveral Hospital and Palm Bay Community Hospital. The Cape Canaveral bonds have been evaluated on the creditworthiness Creditworthiness The condition in which the risk of default on a debt obligation by that entity is deemed low. Creditworthiness Eligibility of an individual or firm to borrow money. of Health First, which Fitch will continue to monitor for surveillance purposes. The `A+' rating reflects Health First's dominant market share and strong financial position. Health First has the leading market share of 67.1% in its defined service area, significantly higher than its chief competitor, Wuesthoff Memorial Hospital, which had 21.5% market share in fiscal 2000. Health First's market position has steadily increased while Wuesthoff's has declined over the past four years. Health First's financial performance is solid with all financial ratios consistent with Fitch's `A' median level. Operating and excess margins at seven months ended April 30, 2001 was 5.5% and 7.9%, respectively. Liquidity is strong with 185.5 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 days cash on hand for fiscal 2000 and includes $24 million of reimbursement Reimbursement Payment made to someone for out-of-pocket expenses has incurred. for prior capital expenditures. Pro forma debt measures (incorporating Health First's Series 2001 issue) remain favorable with 98.6% cash to debt, MADS as 3.5% of revenue and debt to 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 of 3.4x, as of fiscal 2000. Fitch was not requested to rate the Series 2001 bonds. Fitch believes Health First will continue to post financial results reflective of its rating level. In addition, with its leading market share and increasing volume, Health First should be able to maintain its strong market position in its service area. Health First had $469 million total revenue in fiscal 2000. Outstanding debt: --$15,248,000 Cape Canaveral Hospital District, revenue refunding certificates, series 1993(a); --$23,018,000 Cape Canaveral Hospital District, revenue refunding certificates, series 1998. (a) insured by Ambac Assurance Corp., whose insurer financial strength is rated `AAA' by Fitch. |
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