Fitch Assigns ̎AA- ̎ Rating to University of Chicago Medical Center

Fitch Ratings has assigned an  ̎AA- ̎ rating and to the University of Chicago Medical Center, predicting a stable outlook, according to a Fitch news release.

Helping the 3-hospital, 529-bed system earn an  ̎AA- ̎ rating were the following factors:

•    UCMC’s new $700 million hospital pavilion project is on time and within budget, expected to be open in Jan. 2013.
•    Liquidity is strong, with $862 million of unrestricted cash or 317 days cash on hand at June 30, 2010. Fitch’s 'AA' category median for days cash on hand is 215.
•    UCMC’s saw outstanding fiscal performance in 2010, exceeding projections despite a decline in admissions. Total revenue for the 2010 fiscal year ended June 30 and was $1.2 billion.

UCMC's increasing debt burden is Fitch's main credit concern. The anticipated debt burden will be somewhat high for the  ̎AA- ̎ category, especially after 2011 issuance. After the new pavilion opens, total debt is expected to be $848 million.

Read the Fitch release on University of Chicago Medical Center.

Read about other Top 30 Hospitals:

-Study: Distressed Surgeons Don’t Want Schedule Restrictions

-UCSF Breaks Ground on $1.5B Medical Center at Mission Bay

-Duke’s School of Medicine Receives $17.2M Gift


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