Fitch assigns ‘BBB+’ rating to Catholic Health Services of Long Island’s bonds

Fitch Ratings has assigned a “BBB+” rating to the series 2014B bonds issued on behalf of Rockville Centre, N.Y.-based Catholic Health Services of Long Island Obligated Group, which includes five of CHSLI’s six hospitals.

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The bonds are expected to be sold the week of Sept. 8, and the proceeds will be used for various corporate purposes. The bonds are secured by mortgages on the obligated group’s hospitals and its gross revenues.

The rating assignment was based on a number of factors, including the health system’s improved financial performance in the second half of 2013 and through the second quarter of 2014. As of June 30, CHSLI had an operating loss of $1.8 million, compared to a loss of $19.4 million for the same period in 2013.

In addition, St. Francis Hospital in Roslyn, N.Y., and Good Samaritan Hospital Medical Center in West Islip, N.Y., which are both CHSLI facilities, generated $20.7 million in operating income through the second quarter of 2014, compared to a $2.1 million operating loss for the same period in 2013.

More articles on hospital credit ratings:

Moody’s affirms Centra Health’s ‘A2’ rating
Fitch downgrades El Paso County Hospital District’s bonds to ‘AA-‘
Moody’s affirms South Jersey Hospital System’s ‘A2’ rating

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