Standard & Poor's Affirms MGH's A+ Bond Rating

Standard & Poor’s, the leading provider of financial market intelligence and the world’s foremost source of credit ratings, has affirmed Marion Health’s A+ bond rating and stable outlook on its Series 2012A Bonds, a rating which has been achieved since 2002.

“Our bond rating indicates that our Hospital is strong financially and positioned well for the future,” states Paul Usher, President/CEO. “It also signifies the importance of our vision of building relationships and working together to fulfill our commitment to our Healthcare Community.”

A Standard & Poor's rating reflects a borrower's capacity to meet its financial commitments on a timely basis.

The A+ rating reflects S&P’s view of Marion Health’s:

• Strong balance sheet characterized by unrestricted reserves of close to 500 days’ cash on hand and by low leverage;
• Solid operations in fiscal 2012 and the first nine months of fiscal 2013 that are somewhat dependent on the state Hospital Assessment Fee (HAF) program; and
• Stable management team that has undertaken initiatives to enhance the quality of the services offered in Grant County.

Partly offsetting the above strengths, in S&P’s view, are Marion Health’s:

• Increasing competition,
• Soft but improving economic conditions in Grant County, and
• Flat population base and an unemployment rate that is higher than the state and national averages.

The rating is a significant accomplishment for Marion Health because few independent, nonprofit healthcare organizations receive an A+ bond rating.