Community Outreach and Philanthropy, (928) 771-5686, released July 23, 2013 | Aug 30, 2013
Moody’s Investor Service has upgraded Yavapai Regional Medical Center’s (YRMC’s) investment grade bond rating to Baa1 from Baa2. YRMC’s performance outlook is stable.
YRMC’s Baa1 rating is based on strong performance metrics that include:
- A strong market share of 75%;
- Good volume growth with combined inpatient admissions and observation stays up 5.6% in the three years through December 31, 2012;
- Strong and consistent operating performance and cash flow margin; and
- Minimal indirect debt.
The stable performance outlook reflects Moody’s assessment that YRMC will continue to produce strong operating results.
“At a time when credit downgrades are more common than upgrades, it’s reassuring to know that YRMC is standing on solid financial ground,” states Tim Barnett, President and Chief Executive Officer, Yavapai Regional Medical Center. “Our strong bond rating is a reflection of the excellent relationship YRMC has with the communities we serve.”
Healthy Rating Leads to Bond Refinancing
Following the positive financial news from Moody’s, YRMC was able to refinance bonds that were issued in 2003 to pay for major healthcare expansion projects, including the construction of YRMC East in Prescott Valley. By refinancing these long-term bonds, YRMC will realize a significant savings of $6.3 million over the next 20 years.
“The lower interest rates today compared to when the original bonds were issues in 2003 made it very attractive to refinance,” states Brian Hoefle, Chief Financial Officer, Yavapai Regional Medical Center. “With all of the changes in healthcare today, we always go the extra mile to find ways to reduce our expenditures so that we can add new healing services for the community. Refinancing the bonds is just another example of YRMC’s commitment to provide affordable, high-quality healthcare to our region.”