NEW YORK (Standard&Poor's) Feb. 14, 2011—Standard & Poor's Ratings Services revised its rating outlook to positive from stable on the 'A+' rated debt issued for Guthrie Health, Pa. The outlook revision reflects Standard & Poor's view of Guthrie's continued favorable operating results and cash flow generation, which contributed to excellent debt coverage for the rating. In addition, Guthrie has historically maintained a strong balance sheet, characterized by above-average liquidity and minimal leverage, which Standard & Poor's views as a credit strengths.
"Standard & Poor's not only looked at the financial strength of Guthrie Health, but took into consideration our position in the market, reputation, investments in technology, management team, quality scores and growth," stated Craig Faerber, Guthrie Health Chief Financial Officer. "The improved rating is a compliment to the whole organization. And, it will allow us to borrow money at a lower interest rate."
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, long-term care, and home-based services through Corning Hospital, Troy Community Hospital, Robert Packer Hospital, Sayre House Nursing Home, 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.