Fitch Rates Trinity Health Credit Group’s (MI) 2015 Revs ‘AA’; Stable Outlook
--
--
--
--
--
The Rating Outlook is Stable.
The series 2015 bonds are expected to be structured as traditional fixed-rate, variable-rate, and taxable debt and will be priced the weeks of
In addition, Fitch affirms the 'AA' rating on Trinity's currently outstanding
SECURITY
The series 2015 bonds are general unsecured obligations of the
KEY RATING DRIVERS
GEOGRAPHICALLY DIVERSE SYSTEM:
STRONG MANAGEMENT PRACTICES: Fitch views Trinity's management team as a primary credit strength. The team's strong management practices are evident through continued improved revenue collection efforts, consolidation of duplicate services, and a willingness to close or divest in poor performing markets.
GOOD PROFITABILITY: As of
MODERATE DEBT BURDEN: Pro forma maximum annual debt service (MADS) of approximately
ADEQUATE LIQUIDITY: Trinity had sound balance sheet indicators at fiscal year- end 2014 (year end
RATING SENSITIVITIES
LARGE CAPITAL PLANS: Over the next three years management has a large spending plan approaching 200% of annual depreciation which includes major facility renovations, information technology, and routine capital spending. Fitch expects Trinity to maintain its existing financial profile as it embarks on its strategic capital spending plans.
CREDIT PROFILE
Trinity is one of the largest Catholic health care delivery systems in the U.S. With operations in 21 states with 59 owned and operated hospitals, 115 continuing care facilities and home health and hospice programs providing nearly 1.7 million home health visits annually. The organization has total revenues of approximately
As of
The credit factors supporting Trinity's 'AA' rating include the benefits that accrue from the size and scale of the system's operations, a solid overall financial profile, and effective management practices. Trinity's geographic diversity of its operations, providing care in 21 states, allows the organization to realize economies of scale through on-going consolidation of certain shared administrative and financial services, as well as the ability to export clinical and operational 'best practices' across the system. Fitch believes that the system can generate further clinical and operational efficiencies throughout the system over the medium term, which should offset the effects of tighter reimbursement and pockets of sluggish volume growth.
SOLID FINANCIAL PROFILE
In fiscal 2014 Trinity generated
At
Pro forma MADS of
ENHANCED CAPITAL SPENDING PROGRAM
Over the next three years Trinity anticipates funding a total of
Fitch expects Trinity to maintain its current financial profile (i.e. liquidity, profitability and leverage) as it invests in its facilities and strategies.
Additional information is available at 'www.fitchratings.com'
--'Nonprofit Hospitals and Health Systems Rating Criteria' (
U.S. Nonprofit Hospitals and Health Systems Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=746860
Additional Disclosure
Solicitation Status
http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=978700
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.
Fitch Ratings
Primary Analyst:
Director
or
Secondary Analyst:
Dmitry Feofilaktov, +1-212-908-0345
Analyst
or
Committee Chairperson:
Senior Director
or
Media Relations,
[email protected]
Source: Fitch Ratings
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News