Phoenix-based Valleywise Health had its credit rating on various bonds affirmed by Fitch at "AA-," several notches above its general rating of "BBB," given a strong tax revenue base supported by the local government in fast-growing Maricopa County.
The bonds, which will be used to fund the construction of a new inpatient tower as well as several ambulatory and outpatient facilities, are backed up by the strong tax base, which mitigates overall weaker operating performance by the healthcare district, Fitch said.
"The district's taxable value growth has been strong and is expected to continue given population trends," Fitch said. "Fitch considers the tax base very unlikely to suffer losses that would meaningfully erode repayment capacity, even under relatively severe stress scenarios."
Valleywise, whose operations include an acute care hospital, two behavioral health centers and 11 federally qualified health centers, generated total revenues of $807.4 million in fiscal 2022, according to Fitch.