Moody’s affirms Bellin Hospital’s bond rating

Citing a stable outlook, Moody’s Investors Service recently affirmed Bellin Hospital’s “A2” long-term and unenhanced ratings.

The affirmation of the A2 rating and accompanying stable outlook comes on the heels of a similar affirmation by Standard & Poor’s Rating Service. That organization affirmed Bellin Hospital’s “A” bond rating.

Credit ratings give potential buyers of debt securities – such as bonds – an idea of potential risk. An Aaa rating is considered investment grade.

Moody’s ratings range from Aaa, which is the highest grade, to C, the lowest. The ratings agency also appends numerical modifiers to each rating classification, the modifier 1 being the higher end of its rating category, 2 being mid-range and 3 indicating a ranking in the lower end of the rating category.

In its latest ratings report on Bellin Hospital, Moody’s noted, among other things, the Green Bay-based hospital’s:
•    Broad service area throughout Northeast Wisconsin and Michigan’s Upper Peninsula
•    Very high acuity
•    Low average age of plant
•    Manageable capital spending and no new money debt plans in the coming years

In explaining its stable outlook declaration for the hospital, Moody’s said the outlook “factors our expectation that BHS (Bellin Health Systems) will improve operating margins meaningfully above fiscal year 2012 results … and that BHS’ debt coverage ratios will improve over time given its manageable capital spending plans.”

George Kerwin, president and chief executive officer at Bellin Health, said the Moody’s report highlights the Green Bay-based health system’s continued and focused efforts to offer quality and affordable health care services to residents across Northeastern Wisconsin and Michigan’s Upper Peninsula.

“The Moody’s affirmation is a strong indication of our commitment to fiscal responsibility while providing high-quality, cost effective services to the Northeastern Wisconsin and Upper Peninsula communities. Our efforts to control costs while maintaining a close alignment with the needs of these communities continues to translate to a positive outlook,” Kerwin said.

About Bellin Health
Bellin Health, is an, integrated health care delivery system based in Green Bay, Wis. It has serviced people in Northeast Wisconsin and Michigan’s Upper Peninsula since 1908. It is comprised of Bellin Hospital, Bellin Psychiatric Center, 26 Bellin Health Family Medical Center primary care physician clinics, and several retail health clinics known as Bellin Health FastCare. Bellin also operates Bellin Health Partners, a physician-hospital organization with more than 200 specialty physician members, the Bellin Health Oconto Hospital, a critical care access hospital in Oconto, Bellin Fitness Center with four locations, and Bellin College. With its 3,227 employees, Bellin Health is known for its emphasis on preventive health care and is the region’s leader in cardiac, orthopedics, sports medicine, digestive health, mental health, and primary care medicine.