Ratings Agencies Assign Investment-Grade Ratings and Stable Outlook to MetroHealth Bonds
MetroHealth announced today that Fitch Ratings, Moody’s Investors Service and S&P Global Ratings assigned investment-grade ratings and stable outlooks to MetroHealth’s $915 million Series 2017 hospital revenue bonds for its campus transformation project.
Fitch Ratings and S&P Global Ratings assigned a BBB- rating. Moody’s Investors Service assigned a Baa3 rating.
All three agencies assigned stable outlooks.
“We are very pleased with the investment grade ratings, which are consistent with our expectations,” said Akram Boutros, MD, FACHE, president and CEO of MetroHealth. “This is a critical step in our transformation. I’d like to thank our 7,400 employees for making this possible. We look forward to closing on the bonds and starting to roll out the project this summer.”
“The bond ratings are an objective assessment of MetroHealth’s ability to repay the proposed debt issuance,” said Glenn Wagner, senior vice president, Kaufman Hall, MetroHealth’s financial advisors for the campus transformation. “The ratings recognize the rating analysts' confidence in the organization and its ability to execute the transformation plan.”
"MetroHealth has been able to demonstrate to the rating agencies that failure to proceed with the transformation project is not a viable option, and MetroHealth's transformation project is essential to the health and welfare of Cuyahoga County's population,” said Craig Richmond, senior vice president and chief financial officer of MetroHealth. "While our project is certainly significant, the rating agencies have affirmed that we are adopting a risk-adverse plan of finance and that we continue to improve our financial performance."