Fitch Upgrades Wesley Willows Retirement Communities, Illinois to 'BBB'; Outlook Stable.CHICAGO -- Fitch has upgraded City of Rockford, Illinois Rockford is a mid-sized city located on both banks of the Rock River in far northern Illinois. Rockford is often referred to as "The Forest City" and is the county seat of Winnebago County, Illinois, USA. As reported in the 2000 U.S. (Wesley Willows Project), as follows: --Approximately $14.9 million revenue bonds, Series 2002 to 'BBB' from 'BBB-'. The bonds are variable rate and secured by a letter of credit from M&I Bank. Fitch was not asked to assign a short-term rating. The Rating Outlook is Stable. The upgrade to 'BBB' reflects Wesley Willow's (WW) improved liquidity position, improved operating performance since 2003 and the divestiture The breakup of AT&T. By federal court order, AT&T divested itself on January 1, 1984 of its 23 operating companies, which became known as the Regional Bell Operating Companies (RBOCs). of a 97 bed skilled nursing facility skilled nursing facility n. Abbr. SNF An establishment that houses chronically ill, usually elderly patients, and provides long-term nursing care, rehabilitation, and other services. . WW is nearing the completion and fill up of the 64 independent living cottages financed with the series 2002 bonds which has dramatically strengthened WW's balance sheet position since 2003. As of May 31, 2006, WW's unrestricted cash and investments of $18.1 million equates to approximately 597 days cash on hand and 122% cash-to-debt compared to 250 days cash on hand and 61% 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. (FY) 2003. The added monthly service fees associated with the cottages plus the reduction in nursing census has caused operating performance to improve with operating ratios Operating Ratio A ratio that shows the efficiency of management by comparing operating expense to net sales: of 84.8% and 88.2% in FY2004 and 2005, respectively. In December 2005, WW completed the divestiture of the Willows on Main (WOM WOM - write-only memory ), a 97-bed skilled nursing facility located approximately 3 miles from WW's main campus and received sale proceeds of $2.0 million. Credit concerns are the high number of studio units, the recent occupancy declines in the independent living apartment and skilled nursing unit and the potential for addition debt issuance. Of WW's 127 apartments, 40 are studio units that measure 278 square feet. Average occupancy in the apartments has declined to 82% through May 31st from 91% in 2003 due to the number of studio units and increased competition from rental facilities in the primary market area. In addition, WW has experienced a decline in its skilled nursing census over the last 21 months from 94% occupancy at FY2004 to 79% through the 11 months of FY2006. Nursing census has been depressed due to management's decision to keep 20 beds open awaiting Medicare certification which was received in May. Lastly, management is considering various expansion plans including a new community center and additional apartments. While nothing has been approved Fitch expects some additional debt over the next 2-4 years. Wesley Willows is the sole corporate member of three corporations (Wesley Willows, Willows Cottages and Willows Health Center) and operates a total of 127 IL apartments, 151 IL cottages, 36 assisted living as·sist·ed living n. A living arrangement in which people with special needs, especially older people with disabilities, reside in a facility that provides help with everyday tasks such as bathing, dressing, and taking medication. units, and 91 skilled and intermediate nursing beds, in Rockford, IL. Total revenue in FY2005 was $12.4 million. Fitch notes that content and timeliness of WW's quarterly financial disclosure is viewed favorably. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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