Standard & Poor’s has raised the bond rating of Beth Israel Deaconess Hospital-Milton to BB+ from BB-, highlighting the improved operating results of the hospital since its affiliation with Beth Israel Deaconess Medical Center.
“The upgrade is based on Milton's significantly reduced operating loss in 2012 with further improvement expected in 2013,” said Standard & Poor's credit analyst, Cynthia S. Keller. “The stable outlook incorporates our expectations that Milton's improved operating results generating at least two times debt service coverage will continue in fiscal year 2013.
“The significant improvement in our bond rating is a testament to the hard work that has been done at BID-Milton and a validation of the value and benefit of joining the Beth Israel Deaconess health system,” said BID-Milton President and CEO, Peter Healy. “Our committed efforts and system participation have led to increased market share and revenue, expanded clinical programs and reduced cost in our continual quest to provide the right care in the right place at the right time”.
A higher rating could be considered toward the end of this outlook period with continued improvement in unrestricted resources closer to 100 days' cash, a multi-year record of positive operations including CPA's results, limited additional debt, and confidence that the affiliation with BIDMC will continue.