Bangkok--3 Nov--Standard & Poor's
Standard & Poor's Ratings Services revised its outlook to positive from stable and affirmed its 'AA-' long-term rating on New Mexico Hospital Equipment Loan Council's bonds, issued for Presbyterian Healthcare Services (PHS). PHS has continued its record of solid financial performance, with strong operating results and good maximum annual debt service (MADS) coverage. PHS also benefits from being the market's leading integrated delivery system and health plan.
More specifically, the long-term 'AA-' rating and outlook revision reflect our opinion of PHS':
- Continued solid operations and case flow, which generated very good maximum annual debt service coverage;
- Favorable market position as the leading provider of health care services in Albuquerque and New Mexico;
- Sound balance sheet indicators and a good revenue base; and
- Experienced management team that has expressed a focus on clinical outcomes and customer loyalty.
"While we expect continued sound operating performance and liquidity to remain good, it is critical that the system's construction progresses on budget and that the facility opens smoothly," noted credit analyst Geraldine Poon. "Continued sound operating performance and a successful opening of the new facility will likely result in a raised rating in the next year or two," she continued.
PHS will have approximately $512 million in outstanding long-term debt, secured by the gross revenues of the obligated group (which accounts for about 59% of PHS' net assets). The group includes PHS' two Albuquerque hospitals (not including Presbyterian Rio Rancho Emergency Department which is licensed for four beds), three regional hospitals, an ambulance company, the Presbyterian Medical Group, and the Presbyterian Healthcare Foundation. Given PHS' integrated nature, our analysis covers all of PHS, which includes the non-obligated Presbyterian Health Plan (PHP).
USPF Criteria: Debt Derivative Profile Scores, March 27, 2006
Complete ratings information is available to RatingsDirect subscribers on the Global Credit Portal at www.globalcreditportal.com and RatingsDirect subscribers at www.ratingsdirect.com. All ratings affected by this rating action can be found on Standard & Poor's public Web site at www.standardandpoors.com. Use the Ratings search box located in the left column.
Media Contact:
Ana Sandoval, New York (1) 212-438-5095,
[email protected]
Analyst Contacts:
Geraldine Poon, San Francisco (1) 415-371-5078
Kevin Holloran, Dallas (1) 214-871-1412