Twin Health Care Upgrades

Bonds issued by the Monongalia Building Commission on behalf of the Monongalia Health System in Morgantown have been upgraded to A-minus from BBB-plus by Fitch Ratings and Standard & Poor’s.

The upgrades apply to $26.7 million of Series 2011 refunding bonds in addition to the health care provider’s outstanding debt.

The upcoming sale will refund variable-rate debt issued in 2008 and 2005, and terminate a swap associated with variable-rate debt sold in 2002. No other details concerning the sale were immediately available.

The upgrades reflect Monongalia’s operating profitability and strong debt-service coverage, the rating agencies said.

The health system is comprised of a 189-bed, acute-care hospital and a 90-unit, elder-care facility, as well as partnerships in other medical businesses. The provider ended fiscal 2010 with an operating income of $6.3 million, exceeding initial estimate for annual income last year.

Monongalia has second-place market share in the three counties it serves behind the University of West Virginia Hospital, though Monongalia leads its rival in specialty services and surgeries, according to Fitch.

The health care provider’s inpatient admissions edged up in fiscal 2010 after falling in fiscal 2009.

After the upcoming refunding, Monongalia will have 35% of its outstanding debt in variable-rate mode.

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Healthcare industry West Virginia
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