CaroMont, which is expanding current facilities at its 435-bed Gaston Memorial Hospital as well as building a new Belmont, N.C., campus for a combined amount of approximately $411 million, maintains “robust liquidity levels” of 439 days cash on hand as of June 30, Fitch said. That is despite the higher costs associated with the expansion regarding future staffing, ongoing existing labor costs and recent losses of $132 million on unrealized investments.
Fitch issued the grade both for the healthcare system’s Issuer Default Rating and the long-term rating for the series 2021A and series 2021B bonds. The rating outlook is stable, Fitch added.
“Fitch believes that CaroMont will continue to generate sufficient cash flow that allows for the maintenance of strong balance sheet metrics even with high capital spending over the next few years for a new medical campus and critical care tower on its campus,” the report said.
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