CHICAGO -- Standard & Poor's upgraded Aspirus Inc. Obligated Group by one level to A-plus ahead of its $40 million fixed-rate issue.
The outlook is stable. Aspirus issues through the Wisconsin Health and Educational Facilities Authority.
"The rating action reflects our view of Aspirus' improving and consistently solid financial profile over the past few years, continued low and manageable pro forma debt levels, healthy pro forma debt service coverage, and growth of the system in northern Wisconsin and the Upper Peninsula of Michigan," said analyst Suzie Desai in the report published April 16.
Aspirus benefits from a solid business position in the greater region and its development into a small system in northern Wisconsin and the Upper Peninsula of Michigan. "The outlook also reflects our view of Aspirus' financial flexibility, light debt levels, and good operating profile," Desai said.
Barclays is the senior manager on its sale. Aspirus carries an A1 rating from Moody's Investors Service. A portion of the sale will refund 2008 bonds and pay for projects at its various facilities. Aspirus is also entering into a $34 million tax-exempt loan agreement with Barclays to refinance other debt.
Aspirus last year formed a partnership with Aurora Health Care, Bellin Health, Gundersen Health System, ThedaCare Inc., and the University of Wisconsin Health system. The six have combined annual revenues of more than $9 billion. They are sharing best practices for care and technology.
