Ratings Agency Upgrades Methodist Hospitals Bonds - January 11, 2013
Second upgrade in 12 months Underscores Continuing Track Record of Financial Health and Stability
Gary, Indiana – January 11, 2013 Fitch Ratings, one of the three major credit rating agencies, has upgraded Methodist Hospitals bond issues to BBB from BBB-. This upgrade is the second such move by the ratings agency in the past 12 months. The ratings agency cited Methodist’s sustained operating performance in making this latest upgrade, including strong profit margin, improved expense controls and positive trends in physician recruitment and clinical volumes. Through the 11-month period ended November 30, 2012, Methodist Hospitals operating margin exceeded Fitch’s ‘BBB’ category median with an 11.1% EBITDA margin on revenues of $298.7 million.
“We are gratified to have our strength and stability once again confirmed by a key authority. This move by Fitch is another strong signal that the financial markets have confidence in Methodist Hospitals’ stability and direction,” said Methodist Hospitals President and CEO Ian E. McFadden. “We believe that our record of continual operational improvement and growth coupled with our vision to change the way health care is delivered in Northwest Indiana will help us maintain our position as the region’s leader in specialty care.”
About Methodist Hospitals
Methodist Hospitals is a community-based, not-for-profit health system with two full-service acute care facilities that has been leading the way to better health for residents of Northwest Indiana for almost 100 years. Methodist Hospitals offers a number of award – winning programs, including its Neuroscience, Oncology and Heart and Vascular Institutes, Women’s Health program and the Northwest Indiana Center for Bariatric Surgery. Its range of services also includes Emergency services, Orthopedics and Spine Care, comprehensive Rehabilitation Services and Home Health Services.