Fitch Lifts St. Francis

Fitch Ratings last week upgraded to AA-minus from A-plus Saint Francis Medical Center’s $53.9 million of debt issued through the Cape Girardeau Industrial Development Authority.

Analysts attributed the upgrade to Saint Francis Healthcare System’s leading market share of 56% in its southeast Missouri region and strong historical operating profitability that has led to solid liquidity and excellent debt service coverage.

SFHS has seen annual revenue growth of about 11.5% to $296.7 million and benefits from cash and investments totaling $194.6 million.

Primary credit concerns include the system’s competitive service area, a high reliance on governmental payors, and large unrealized losses in its investment portfolio. While SFHS holds the dominant market share in its primary service area, its largest competitor, Southeast Missouri Hospital Association, is located just two miles away.

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Healthcare industry
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