Standard & Poor's Ratings Services said it raised its long-term rating to A-plus from A on the Indiana Finance Authority's series 2009A, 2011, and 2013A fixed-rate revenue bonds, issued for Deaconess Health System Inc.
The outlook is stable. At the same time, Standard & Poor's withdrew its ratings on Deaconess' series 2004A bonds because the bonds were retired.
"The raised rating reflects our view of Deaconess' increase in unrestricted reserves, decreasing debt levels and the resulting improved maximum annual debt service coverage, which should further strengthen as debt service continues to decline," said Standard & Poor's credit analyst Suzie Desai. "Further supporting the rating is that management does not anticipate issuing new debt within the two-year outlook period," Desai added.
Deaconess, in Evansville, Ind., is a referral center for the 25-county tri-state area of Southwestern Indiana, Western Kentucky, and Southeastern Illinois, operating a total of 671,701 beds on five campuses.
