Upgrade Contradicts Market Trends, Points to "Solid" Performance and
FT. LAUDERDALE, Fla., Nov. 2 /PRNewswire/ -- Citing solid performance, a sustained improvement in core operations through general cost containment and revenue enhancement initiatives, key service line growth and better management of productivity, the nations' two largest rating agencies have issued Broward Health's bond ratings.
Moody's Investor Services reaffirmed its recent upgrade of Broward Health's ratings to A2. Standard & Poor's Rating Services upgraded their rating to 'A.' Each called Broward Health's outlook stable. The high ratings make bonds attractive to investors.
These upgrades are particularly notable given the considerable challenges faced by hospitals today. In its reports, Standard & Poor's and Moody's both identify Broward as a very competitive market with significant challenges in terms of growth, pricing and competition - thus making the upgrade and reaffirmation of the prior upgrade even more positive news for Broward Health.
"These rating agencies know the industry; they know the difficulties in our market, and through their upgrades, they are affirming the operating strategy we have put in place," said Alan Levine, President/CEO of Broward Health. "Our fundamentals are strong, and their confidence level in us is high. We do not take this lightly, and we will continue to work hard to improve our operating performance."
Both rating agencies also cite the strategy of reducing taxes as a strength. In September, Broward Health's governing board, the North Broward Hospital District Board of Commissioners, voted to cut the millage rate to 1.6255, the lowest in more than 25 years. This was the fourth tax cut in a row, with the rate being down from its high of 2.50.
As an operating strategy, Broward Health has been trying to reduce its
reliance on property taxes decreasing to 15% of total revenu
|SOURCE Broward Health|
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