Gary, Indiana – FEBRUARY 20, 2012 Fitch Ratings, one of the three major credit rating agencies, has upgraded Methodist Hospitals bond issues to BBB- from BB+. The ratings agency cited several factors in making the upgrade, including Methodist’s consecutive years of improving profitability, consistent and healthy liquidity, effective expense control and improving medical staff stability. In 2010, Methodist Hospitals posted a 1.9% operating margin and 10% operating EBITDA, which compare favorably with Fitch’s ‘BBB’ medians of 1.7% and 8.5%, respectively. Methodist Hospitals’ total revenues in 2010 were $289.9 million. Results for 2011 will continue the positive trend, exceeding 2010 performance across all measures.
“We are gratified to have our strength and stability confirmed by a key authority. This move by Fitch is a strong signal that the financial markets have confidence in Methodist Hospitals’ stability and direction,” said Methodist Hospitals President and CEO Ian E. McFadden. “We believe that our focus on growth supported by continued operational improvement will help us maintain our position as Northwest Indiana’s leader in specialty care.”
About Methodist Hospitals
Methodist Hospitals is a community-based, not-for-profit health system with two full-service acute care facilities that has been leading the way to better health for residents of Northwest Indiana for almost 100 years. Methodist Hospitals offers a number of award – winning programs, including its Neuroscience, Oncology and Cardiovascular Institutes, Restart Center for bariatric surgery and Women’s Health program. Its range of services also includes Emergency services, Orthopedics and Spine Care, comprehensive Rehabilitation Services and Home Health Services.