Standard & Poor’s has revised its outlook to stable from negative on health care provider Wheaton Franciscan Services Inc.’s BBB-plus rating due to its improved operating results. The revision affects bonds issued through the Wisconsin Health and Educational Facilities Authority in 2002, 2003, and 2006.
“The outlook revision reflects a significant improvement in [Wheaton Franciscan Healthcare’s] financial performance in fiscal 2009 and in the six months through December 2009,” said Stephen Infranco. “The performance has contributed to better cash flow and an improvement in the debt service coverage ratio.”
The system is seeking $67 million in annual savings and also collected $48 million last year from a new assessment tax that leverages federal matching funds.
WFH is a Catholic-sponsored system that operates 12 hospitals and other facilities in Wisconsin, Iowa, and Illinois.