Fitch assigns ‘BB’ rating to Memorial Health System’s bonds

Fitch Ratings has assigned a “BB” rating to $60 million of series 2015 revenue bonds that are expected to be issued on behalf of Marietta, Ohio-based Memorial Health System.

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The series 2015 bonds are expected to be issued through negotiated sale the week of March 9. The proceeds of the bonds will be used for various purposes, including to fund capital projects and for reimbursement of approximately $11 million in prior capital expenditures.

The rating assignment was supported by a number of factors, including Memorial Health System’s dominant market share in its primary service area and its expansion into the West Virginia market. The rating assignment was also supported by the system’s operating performance, which has been stable and relatively consistent over the last four years.

Fitch said the system’s light liquidity is a primary credit concern.

 

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