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Rating Agencies Deliver Positive Reports for Hartford HealthCare
January 03, 2020
As part of its $750 million financing plan, Hartford HealthCare has received solid reviews from three national rating agencies.
Fitch Ratings, one of the three, has upgraded Hartford HealthCare’s rating to “A+” with a stable outlook. Fitch’s previous rating was “A” with a positive outlook.
The other two agencies — Moody’s Investors Service and S&P Global Ratings — maintained an “A” rating with a stable outlook, consistent with last year’s review.
In its press release, Fitch said “the upgrade to A+ reflects the continued improvement in Hartford HealthCare’s operating performance in fiscal 2019.”
Fitch continued: “Underlying the strong turnaround in performance has been the system’s continued strategic growth across the state of Connecticut, as Hartford HealthCare’s market share continues to incrementally increase.”
The agency noted “ongoing investments in physicians, key service lines and broad outpatient strategy, as well as additional hospital acquisitions, have supported strong revenue growth.”
Hartford HealthCare President and Chief Executive Officer Jeffrey Flaks said the ratings reflect the hard work of all 30,000 people who are part of the system.
“Together, we are ensuring Hartford HealthCare’s ability to offer more access to expertise for more people and communities,” Flaks said.
All three ratings agencies mentioned Hartford HealthCare’s acquisition of St. Vincent’s Medical Center in Bridgeport on Oct. 1 as a key element in the system’s strategy, and noted that continued expansion of its ambulatory network in Fairfield County is anticipated.
The agencies also noted the recent settlement with the State of Connecticut regarding Medicaid reimbursement as a positive development.
Hartford HealthCare’s financing will provide funds for the recent acquisition of St. Vincent’s Medical Center plus further investment in Fairfield County, as well as refinancing current debt at lower interest rates.
Learn more about Hartford HealthCare here.