Standard & Poor’s last week revised its outlook on Aspirus Wausau Hospital Inc.’s A credit to stable from negative to reflect the hospital’s maintenance of a solid balance sheet and its adequate financial performance.
The hospital has $112.4 million of outstanding debt that was sold in 1998, 2000, and 2004 through the Wisconsin Health and Education Facilities Authority.
“While Aspirus has maintained its business position despite increased competition, Aspirus must be able to generate operating performance consistent with 2007 levels in order to fund its capital investments and remain competitive,” analyst Suzie Desai wrote.
The hospital has maintained a good liquidity position with about 200 days’ cash on hand, even with ongoing spending out of operating cash to maintain its business position, and has good maximum annual debt service coverage of 4.6 times in fiscal 2007. The hospital holds a leading market position in Marathon County.
According to Standard & Poor’s, factors that offset the hospital’s strengths include increased competition and volume declines, in addition to increasing capital investments planned in the coming years.