GARY – Fitch Ratings, one of the three major credit rating agencies, has upgraded Methodist Hospitals bond issues to BBB from BBB-. The upgrade is the second such move by the ratings agency in the past 12 months.
The ratings agency cited Methodist’s sustained operating performance in making this latest upgrade, including strong profit margin, improved expense controls and positive trends in physician recruitment and clinical volumes. Through the 11-month period ended Nov. 30, Methodist Hospitals operating margin exceeded Fitch’s BBB category median with an 11.1 percent EBITDA margin on revenues of $298.7 million.
“We are gratified to have our strength and stability once again confirmed by a key authority. This move by Fitch is another strong signal that the financial markets have confidence in Methodist Hospitals’ stability and direction,” said President and CEO Ian E. McFadden. “We believe that our record of continual operational improvement and growth coupled with our vision to change the way health care is delivered in Northwest Indiana will help us maintain our position as the region’s leader in specialty care.”