Alliance Hospital Receives Ratings Upgrade
The Standard & Poors (S&P) investment ratings service recently released a report stating that Alliance Community hospital's ratings outlook has improved.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
Hospital administrators received notification from S&P this week that the facility's debt rating is on the upswing.
According to a media release from S&P, ACH's OH Series 2003 revenue bonds were increased in rating from "AA-/A-1+" to "AA+/A-1+" based on the application of a low-correlation joint-criteria methodology with a letter of credit from JP Morgan chase Bank. S&P also revised its rating outlook to stable from negative and affirmed its â€œBBB-â€ underlying rating (SPUR) on the series 2003 hospital revenue bonds issued for ACH.
â€œThe outlook revision and rating affirmation reflects ACH's improvement in operations through the first six months of 2009, highlighted by an operating gain of $1.9 million, which is largely a result of management's continued attention to expense control and growth opportunities in new markets, as well as growth in unrestricted liquidity as measured by days' cash on hand," said S&P's credit analyst Meggi McNamara.
The report stated that the outlook revision and rating affirmation further reflects improved profitability in cash flow with improvement continuing through June 30, 2009; growth in unrestricted liquidity -- more specifically unrestricted cash, which has grown to $25 million or 106 days' cash through June 30, 2009; conservative investment allocation with 100% of investments in fixed income; and solid inpatient market share of about a 54% share in the primary service area.
ACH Senior Vice President of Finance and Operations, Dale Wells, MBA, CHCE said, â€œWe are encouraged by the S&P report, which is really a vote of confidence about the future of ACH operations.â€
â€œWe remain diligent in our efforts to retain a place of strength in the marketplace. It's a process that begins internally, with our continued implementation of suggestions offered by the ACH colleagues, physicians, and volunteers that have helped us improve our operational budget considerably in the past six months,â€ said Wells.
He lauded the collective staff, saying that all ACH Colleagues are doing their part to suggest cost effective ideas and, in many cases, offering to make personal contributions toward the benefit of ACH operations.