Fitch Ratings has affirmed the "AAA" rating assigned to approximately $212.6 million of revenue bonds issued on behalf of Memphis, Tenn.-based St. Jude Children's Research Hospital by the Shelby County Health, Educational, and Housing Facility Board.
The bonds are secured by an unrestricted revenue pledge of the hospital and an unconditional guaranty by the American Lebanese Syrian Associated Charities.
The rating affirmation was supported by a number of factors, including St. Jude's impressive fundraising. In fiscal year 2014, unrestricted contributions and bequests for the sole benefit of St. Jude totaled $965 million, representing more than 70 percent of the hospital's annual operating revenue.
The hospital does face some challenges, which were considered for the rating affirmation, such as declines in balance sheet strength relative to debt, according to Fitch. However, no new debt is presently expected.
More articles on healthcare finance:
HCA set to join S&P 500
Returning an organization to profitability: Q&A with NYU Langone Medical Center CFO Michael Burke
Blue Shield issues counter offer in Sutter Health cost dispute