For Immediate Release:
Wednesday, July 27, 2011
Contact: Maggie Barnes
Tel. (570) 887-4415
Standard and Poor's Raises Guthrie Rating for Series 2011 Bonds
Sayre, PA – Guthrie Health is proud to announce that two prominent bond rating firms have given excellent grades to its Series 2011bonds being issued through the Central Bradford Progress Authority.
Standard & Poor's Ratings Services has raised its long-term rating on Health Care Authority of Sayre's bonds, issued for Guthrie Health, to 'AA-' from 'A+'. Standard & Poor's also assigned its 'AA-' rating to the authority's $106.7 million Series 2011 revenue bonds, issued for Guthrie Health.
Fitch Ratings has assigned an ‘A+' rating to those same bonds, the proceeds of which will fund $100 million of capital expenditures, equipment investment and debt retirement.
The higher bond ratings make conditions more favorable in the financial markets when Guthrie wants to borrow money for major projects or to refinance existing debt.
"The upgrade reflects our assessment of Guthrie Health's favorable business position, continued solid operating performance, and cash flow generation, which contributes to strong pro forma coverage, coupled with excellent and improving liquidity measures," said Standard & Poor's credit analyst Meggi McNamara.
The Fitch rating reflects Guthrie's continued strong financial performance. Additionally, key rating drivers are Guthrie's integrated delivery platform, good market position, and strong fiscal 2010 and 2011 performance.
Executive Vice President and Chief Financial Officer Craig Faerber said, "Having a strong financial position is also part of our obligation to the communities Guthrie serves. Doing so allows us to make the investments needed to provide the technology, infrastructure and skilled personnel that deliver our high-quality health care."
Guthrie Health is a community-based, not-for-profit health care system jointly formed by Guthrie Healthcare System (GHS) and Guthrie Clinic, also not-for-profit health care organizations. GHS provides inpatient, outpatient and home-based services through Corning Hospital, Troy Community Hospital, Robert Packer Hospital, and Guthrie Home Care and Guthrie Hospice. Guthrie Clinic provides primary and specialty physician services at 25 regional clinics. Guthrie Health provides care for 200,000 patients annually within its eleven-county area service area across the northern tier of Pennsylvania and the southern tier of New York.