NEW YORK - Standard & Poor's Ratings Services said it revised its outlook to positive from stable on Providence Health System (PHS), Wash.'s outstanding debt - including debt issued for PHS by Anchorage, Alaska, the California Health Facilities Financing Authority, Clackamas County Hospital Facilities Authority, Ore., and the Washington Health Care Facilities Authority - based on solid cash flow trends and balance sheet improvement.
In addition, S&P said it assigned its AA- rating to $213.37 million in health revenue bonds issued for PHS by the Clackamas County Hospital Facilities Authority and $24.55 million in health system revenue bonds issued for PHS by the Alaska Industrial Development and Export Authority. The outlook on the new bonds is also positive and the bonds are slated to sell the week of May 12th.
"PHS has shown five years of continuous financial improvement, reversing operating losses in 1998 and previous years to reach an operating income of $102 million in fiscal 2002," said S&P credit analyst Lisa Zuckerman, who added that other credit strengths include PHS' history of strong management as well as the system's significant revenue and risk dispersion, with facilities in Washington, Oregon, California, and Alaska.
The outlook revision affects approximately $740 million in debt, S&P said. Following the new issuances, PHS will have approximately $945 million in outstanding debt.
PHS also intends to issue approximately $60 million in refunding bonds in the state of Washington within the next month, according to the rating agency.
