KERRVILLE – Fitch Ratings has upgraded the $51.2 million Kerrville Health Facilities Development Corporation hospital revenue bonds, issued on behalf of Peterson Regional Medical Center (PRMC), to ‘A’ from ‘BBB’+. The rating outlook has been revised from Stable to Positive.
Fitch’s base case incorporates PRMC’s nine month fiscal year to date 2018 performance. The rating upgrade to ‘A’ is driven by PRMC’s strong financial assessment under the “U.S. Not-for-Profit Hospitals and Health Systems Rating Criteria”, which places a heightened emphasis on PRMC’s maintenance of low leverage and high liquidity through the cycle in Fitch’s rating case.
Chief Financial and Compliance Officer, Lisa Medovich, CPA explains that the elevated rating confirms the financial stability and strength of the hospital and organization. “An upgrade to ‘A’ is a direct reflection of a strong balance sheet, highlighted by excellent liquidity, with higher-than-average cash on hand and strong cash to debt. She adds, “Our dominant position in the marketplace, coupled with our focused investment in physician employment, were key drivers to the upgrade in our bond rating. We are proud to show continued improvement and know this rating offers added confidence in their community-based not-for-profit healthcare system.”
PRMC is the leading provider of acute and primary care services in the nine county area in central Texas, headquartered in Kerrville. The healthcare system consists of PRMC, the 124 licensed bed hospital, ambulatory care center, hospice, home care, urgent care, community care, outreach laboratory, three locations for Peterson Medical Associates employed physicians and additional specialty care facilities.
For more information or a copy of the full report, contact Chief Financial/Compliance Officer Lisa Medovich at firstname.lastname@example.org or call 830.258.7632.