Fitch Reaffirms WakeMed’s AA- Bond Rating - Archived
RALEIGH, N.C. (February 23, 2011) – On the heels of receiving A1 bond rating affirmation from Moody’s Investor Services last month, WakeMed Health & Hospitals is pleased to announce Fitch Ratings has also reaffirmed the AA- rating on WakeMed’s $470 million of outstanding bonds issued through the North Carolina Medical Care Commission. These two positive bond ratings speak to WakeMed’s strong financial position and reaffirm that WakeMed bonds are high-quality investments.
Similar to the Moody’s report, Fitch Ratings noted WakeMed’s dominant inpatient market share in Wake County, strong cardiac utilization trends and excellent reputation for quality, good profitability rations, and 242.4 days cash-on-hand.
“Our strong financial position enables us to have many options and opportunities,” commented Mike DeVaughn, WakeMed chief financial officer. “In short order, you will see WakeMed breaking ground on new freestanding emergency departments in both the Brier Creek and Garner neighborhoods.”
WakeMed was first rated by bond rating agencies Moody’s and Fitch in 2009 and received high ratings from both agencies. Shortly after the positive ratings, WakeMed entered an extremely tight bond market, selling $170 million in fixed rate bonds in just a few days. A couple of weeks later, WakeMed issued an additional $75 million in variable rate bonds. Both bond issuances achieved a good interest rate and over-sold bonds.
Fitch Ratings and Moody’s Investor Services both regularly reassess rated organizations’ financial position and bond stability to reassure and educate bond investors. At this time, WakeMed has no immediate plans to enter the bond market.
About WakeMed Health & Hospitals
WakeMed Health & Hospitals is a private, not-for-profit health care organization based in Raleigh, N.C. The 870-bed system comprises a network of health care facilities throughout Wake and Johnston Counties. Centers of excellence include cardiac and vascular care, women’s and children’s services, physical rehab, emergency and trauma, orthopedics, neurosciences, home care and numerous wellness and community outreach programs. WakeMed’s team of 7,750 employees, 1,000 volunteers and more than 1,000 affiliated physicians serve the residents of North Carolina using the most advanced technologies to ensure the finest in health care. For more information, visit www.wakemed.org.