Cleveland Clinic Health System will become one of the few systems in the
Due to CCHS' national reputation, strong investment position, exceptional fundraising, and management discipline support, the system's risks to century bonds are minimized, according to Moody's.
The health system's century bonds will represent 12 percent of its total debt, and CCHS' debt policies provide management discipline for long-term repayment. The system is putting policies into place, including annual deposits and reviews for deficiencies, to help ensure future management teams use practices that will allow for repayment of principal in 100 years.
Beginning in 2015 and continuing annually until 2044, CCHS will deposit an annual amount in the Century Bond Fund, which will likely be sufficient to fund all remaining interest payments after 2044 and the principal maturity payment due on the century bonds in 2114.
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