Fitch Ratings has upgraded the rating on $67 million of series 2013A fixed rate revenue bonds, $17.6 million of series 2011A fixed rate revenue bonds and $43.9 million of series 2009A fixed rate revenue bonds issued on behalf of Evansville, Ind.-based Deaconess Health System to "AA-" from "A+."
The rating upgrade was supported by a number of factors, including the health system's strong revenue growth in recent years, solid market position and continued liquidity growth. Deaconess was able to execute its strategic plan, which has resulted in 57 percent liquidity growth and 16 percent revenue growth in the last two fiscal years.
The health system faces some challenges, which were considered for the rating upgrade, including the presence of competitor St. Mary's Medical Center, which is owned by St. Louis-based Acension Health. Although it is a concern, Fitch believes "Deaconess' current strategies well-position the organization to maintain its competitive profile."
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