Standard & Poor’s revised its outlook to positive from stable on debt issued for St. John’s Medical Center in Wyoming.
The 2011B hospital revenue bonds, issued for the center by Teton County Hospital District, were affirmed with a BBB rating.
“The outlook revision reflects our view of St. John’s strong business position, stable demographics, good operating results in fiscal 2012 and fiscal 2013 to date, and stable tax support,” Standard & Poor’s analyst Geraldine Poon said in a report. “Utilization statistics also remain sound.”
Proceeds from the bond issue are funding a hospital expansion, which is expected to be completed on time within the next year.
St John’s currently operates a 40-bed hospital and a 60-bed long-term care facility in Jackson, Wyo. The hospital’s service area includes several counties, including Teton County.
Standard & Poor’s said it believes the new capacity from the hospital expansion will be positive for the hospital’s bottom line, but that capital costs will increase.
“We will consider raising the rating following the successful completion of the project,” the report said. “Solid operating results in fiscal 2014 and continued sound debt service coverage are also key to the rating.”