Fitch Ratings last week upgraded about $64.4 million of outstanding Delaware Health Facilities Authority revenue bonds sold for the Beebe Medical Center project to A-minus from BBB-plus.
The Series 2004A, 2005A, and 2005B were boosted to A-minus with a stable outlook. The upgrade mainly reflects BMC’s “historically sound profitability and positive utilization trends,” Fitch said.
The center is a 195-bed acute-care hospital located in Lewes that had $217 million of operating revenues in fiscal 2008.
The upgrade also reflects BMC’s completion of a patient tower project and of its multiyear contract with Blue Cross Blue Shield, which accounts for 40% of the locally insured market, the rating agency said.
Liquidity is a credit concern, analysts said. BMC’s unrestricted cash and investments ending Dec. 31 were at $76.5 million, which is down from the previous year’s $104.5 million. But Fitch said the hospital will continue to operate at or close to historic profitability levels.