...Unique Credit Profile: Fitch Ratings stand-alone childrens hospitals (childrens hospitals) strong ,,AA median rating reflects their unique credit profile that typically includes robust liquidity, solid operating profitability, unique market positions, strong philanthropic support and specialized clinical services relative to the hospitals in Fitchs broader rating portfolio. 2013 Financial Improvement: Nearly all financial metrics displayed improvement in fiscal 2013 from fiscal 2012 levels. Specifically, median days cash on hand improved to 289.1 days from 248.7 days, operating EBITDA margin increased to 13.8% from 12.8% and debt service coverage by EBITDA was 7.2x, up from 6.4x. Fitch attributes the improved performance to good top-line revenue growth, successful expense management and positive investment returns. High Medicaid Exposure: High exposure to Medicaid and supplemental funding continues to make childrens hospitals particularly vulnerable to governmental budget cuts. However,...
