Fitch, Standard & Poor’s confirm AA- rating/stable outlook; Moody’s affirms A1/positive outlook 

 

CINCINNATI, OH (April 18, 2012) – Catholic Health Partners (CHP) today announced that Fitch Ratings and Standard & Poor’s Ratings Services have affirmed the system’s AA- rating with stable outlooks – and Moody’s Investor Service affirmed an A1 rating with a positive outlook.

 

 “This is significant, given the economic situation in the geographic area we serve and the challenges facing healthcare as a whole,” said Michael D. Connelly, CHP’s President and CEO.
 

Maintaining ratings in the AA- category allows CHP to access the capital markets and borrow funds at more competitive rates than it would otherwise, thus enabling CHP to carry out its mission of improving the health of communities with an emphasis on people who are poor and under-served. In general, the higher the bond rating, the lower the interest rates CHP pays on debt for projects such as new hospital buildings and expensive equipment like MRI’s.
 

The rating services cited these operating strengths:

Fitch said the factors supporting the ‘AA-‘ rating remain largely unchanged from its last rating update in April 2010. “The ‘AA-‘ rating is supported by the size and scale of CHP’s operations, solid market positions in each of its service areas, and CHP’s improved financial profile since fiscal 2009,” Fitch stated.
 

Standard & Poor’s said: “The stable outlook reflects CHP’s strong market presence, excellent expense control, and opportunistic divestitures and acquisitions that have resulted in an improved financial profile.”
 

Moody’s noted: “The A1 rating is based on CHP's large state-wide presence in Ohio, leading and growing market shares in most markets, sustained operating performance in 2011 and improving volume and revenue growth, significant increase in the system's unrestricted investment position to a strong level, manageable debt structure risks, and well funded pension plan.”
 

“CHP will continue to focus on adding value through improved operating performance and quality initiatives,” said James R. Gravell, CHP’s Senior Vice President and Chief Financial Officer. “Maintaining market share under healthcare reform and process improvement through care transformation will be the aim of CHP going forward.”
 

About Catholic Health Partners

 

Catholic Health Partners (CHP) is the largest health system in Ohio and one of the largest nonprofit health systems in the United States, employing more than 32,000 associates in Ohio and Kentucky. CHP is one of the top healthcare systems in the nation for quality and efficiency as rated by Thomson Reuters. With $5.4 billion in assets, CHP operates more than 100 health facilities, including 24 hospitals, 15 senior living communities, five hospice programs, eight home health agencies, and a health insurance plan. Its hospitals operate as Mercy, Mercy Health, Mercy Health Partners, Humility of Mary Health Partners, Community Mercy Health Partners and St. Rita’s Health Partners. True to its mission, CHP provided $345.7 million in community benefit services in 2011.