Fitch affirms Elmhurst Memorial Healthcare's 'BBB' rating

Fitch Ratings has affirmed the "BBB" rating on Elmhurst (Ill.) Memorial Healthcare's 2013A, 2013B, 2008A and 2009D revenue bonds.

The rating affirmation affects $76 million of series 2013A taxable revenue bonds, $33 million of series 2013B taxable revenue bonds, $124.8 million of series 2008A revenue bonds and $50 million of series 2008D revenue bonds.

The rating affirmation was supported by a number of factors, including EMH's improved financial performance. The health system's financial results in fiscal year 2014 were improved from 2013 partially due its merger with Edward Hospital and Health Services in Naperville, Ill. EMH's operating loss decreased from $46 million in FY 2013 to $26 million in 2014.

The health system also faces some challenges, which were considered for the rating affirmation, such as having a heavy debt burden. EMH's debt burden is a credit concern, with its maximum annual debt service equating to 5.7 percent of its FY 2014 revenue.

More articles on hospital credit ratings:

Fitch assigns 'AA' rating to Providence Health & Services' bonds 
Moody's assigns 'Baa3' rating to Holy Redeemer Health System's bonds 
Moody's affirms NorthShore University HealthSystem's bond ratings 

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