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Baptist bonds get BBB rating

Fitch Ratings has affirmed Baptist Health Care Corporation’s (BHCC) Issuer Default Rating (IDR) at ‘BBB’ and the ratings on approximately $610 million series 2020 A & B revenue bonds issued by Escambia County Health Facilities Authority on behalf of BHCC at ‘BBB’.

Some interesting notes in the announcement:

Fitch believes the new Brent campus will added to Baptist’s patient volume, improve patient care efficiency, and enhance physician recruitment. The new facility should result in a financial profile more consistent with the ‘BBB’ rating over time.

Baptist ended its FY 22 on Sept. 30 with an operating loss of 3%. “The negative performance was driven largely by macro staffing and nurse agency costs early in the year faced by most hospital systems in the U.S.”

Fitch’s expects Baptist to produce a breakeven performance in FY23.

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