Trinity Health, ND Revenue Bond Rating Lowered To 'BB+' From 'BBB-' On Near-Term Decline In Reserves, Softer Earnings

CENTENNIAL (S&P Global Ratings) Aug. 18, 2022--S&P Global Ratings lowered its long-term rating to 'BB+' from 'BBB-' on Ward County, N.D.'s series 2017C fixed-rate revenue bonds, issued for Trinity Health (Trinity). The outlook is negative. "The downgrade and negative outlook reflect our view of the expected near-term decline of unrestricted reserves due to a strategic equity contribution for Trinity's replacement hospital, leading to very thin days' cash on hand and cash to long-term debt," said S&P Global Ratings credit analyst Wendy Towber. "Management also projects a softening in earnings and operating cash flow concurrent with the facility's launch," Ms. Towber added. The 2017C bonds are secured by gross revenues of the obligated group and a mortgage on certain hospital property.

...August 18, 2022 CENTENNIAL (S&P Global Ratings) Aug. 18, 2022--S&P Global Ratings lowered its long-term rating to '##+' from '###-' on Ward County, N.D.'s series 2017C fixed-rate revenue bonds, issued for Trinity Health (Trinity). The outlook is negative. "The downgrade and negative outlook reflect our view of the expected near-term decline of unrestricted reserves due to a strategic equity contribution for Trinity's replacement hospital, leading to very thin days' cash on hand and cash to long-term debt," said S&P Global Ratings credit analyst Wendy Towber. "Management also projects a softening in earnings and operating cash flow concurrent with the facility's launch," Ms. Towber added. The 2017C bonds are secured by gross revenues of the obligated group and a mortgage on certain hospital property. Trinity Health consists of the parent company, Trinity Hospitals, Trinity Kenmare Hospital, Trinity Homes, Trinity Health Foundation, B&B Drug, and Medical Arts Outpatient Services. Trinity...

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