The Rating Outlook is Stable.
The series 2012A&B, 2008 and 2006 bonds are secured by pledge of gross receipts, mortgage, and certain property. Additionally, the series 2008 and 2006 bonds are supported by the respective HSBC Bank letters of credit (LOCs). The series 2007 bonds are supported by first mortgage liens on all property acquired by Our Lady Renaissance (OLV), all unrestricted accounts receivable, and the LOC from HSBC Bank.
KEY RATING DRIVERS
SOLID MARKET POSITION: CHS continues to hold the leading market position in
IMPROVING PROFITABILITY: In fiscal 2013 (
SATISFACTORY BALANCE SHEET: Through the three-month interim period 2014 (
INCREASING DEBT BURDEN: Over the next 12 months CHS plans to borrow approximately
MAINTENANCE OF CURRENT PROFILE: Fitch expects CHS to maintain its leading market position, while sustaining consistent operating profitability that should support the incremental 2015 borrowing.
ABSORPTION OF ADDITIONAL DEBT: With the consideration of additional debt in 2015, which will increase the organization's total debt burden, Fitch believes it is imperative that CHS generate commensurate revenues to largely offset any leverage metric deterioration.
CHS is a large healthcare delivery system headquartered in
SOLID FINANCIAL PROFILE
Fitch views favorably CHS' improving profitability trend coupled with a relatively low leverage position. In 2013, CHS generated
Overall, MADS of
Through the three-month 2014 interim period, CHS earned approximately
LEADING MARKET POSITION
CHS held a leading market position of 45.1% in
CHS' debt profile is approximately 26% fixed rate and 74% variable rate. The system has six outstanding swaps with HSBC Bank and
CHS covenants to disclose annual audited financial statements and quarterly information to the MSRB's EMMA system.
Additional information is available at 'www.fitchratings.com'.
--'U.S. Nonprofit Hospitals and Health Systems Rating Criteria' (
U.S. Nonprofit Hospitals and Health Systems Rating Criteria
Source: Fitch Ratings
Most Popular Stories
- Pandora Tumbles in Late Trading
- Sporty Ford Fiesta Fires on All 3 Cylinders
- Stop-Start Engines Save Gas, Reduce Emissions
- World Tensions Don't Curb Enthusiasm for Stocks
- Russia Fears Lasting Damage From Ukraine Crisis
- Visa, Amazon Results Drag Down the Street
- U.K. Economy Surpasses Pre-Crisis Peak
- Ohio State Band Chief Fired After Probe
- Hispanic Leader Goes the Extra Mile
- Shia LaBeouf Plea Deal, Alcoholism Treatment