Fitch Ratings has affirmed the 'A+' rating on the following --
The Rating Outlook is Stable.
Vidant has an additional
The bonds are a general and unsecured obligation of the obligated group, which includes the parent company and the flagship facility,
KEY RATING DRIVERS
STEADY OPERATING PERFORMANCE: The affirmation at 'A+' reflects Vidant's steady operating performance, supported by strenuous efficiency and cost containment efforts across its system. Fiscal 2013 (
ADDITIONAL DEBT EXPECTED: Vidant expects to issue an additional
SOLID MARKET POSITION: After several years of growth via acquisition and medical staff integration, Vidant has maintained a leading position within its 29-county service area equal to 36.7 percent. Continued efforts to expand its ambulatory network in the region, increase physician recruitmentat the community hospitals and drive high acuity cases to the tertiary flagship should help preserve Vidant's competitive position.
CHALLENGING SERVICE ENVIRONMENT: Fitch notes the total service area has generally negative economic indicators. This is borne out in Vidant's somewhat high level of
BALANCE SHEET STABILITY: Vidant is planning to undertake additional debt and project spending over the near term and is projecting its cash flow to remain steady through construction. Fitch expects liquidity will be maintained in line with the increase in debt, and related metrics remain consistent with the 'A' rating category.
Fitch uses consolidated financial statements in its analysis.
Vidant provides quarterly (within 45 days) and annual (within 120 days) disclosure via the Municipal Securities Rulemaking Board's EMMA System. Disclosure includes financial statements and utilization information.
Vidant has been successful in its operating efficiency and ambulatory market reach efforts, successfully offsetting flat to declining inpatient activity and preserving operating cash flow at or above Fitch's 'A' category median since fiscal 2011. During fiscal 2013, Vidant generated a healthy 4.4 percent operating margin by exerting tight controls in labor and supply costs, coupled with growth in its integrated medical staff and associated volumes.
SOLID MARKET FOOTPRINT
Vidant serves the 29 contiguous counties in eastern
Still, Fitch notes that overall area economic indicators remain somewhat negative, particularly outside the economic engine of
MANAGEABLE DEBT PROFILE
Vidant also novated its
Over the next 12-24 months Vidant is anticipating issuing approximately
Additional information is available at 'fitchratings.com'
--'Nonprofit Hospitals and Health Systems Rating Criteria',
U.S. Nonprofit Hospitals and Health Systems Rating Criteria
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Fitch Ratings has affirmed the 'A+' rating on the following