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Fitch Ratings upgrades Akron Children's to AA-

04-18-2017 ( Ohio )

Fitch Ratings has upgraded its ratings on $195 million in bonds issued on behalf of Akron Children’s Hospital from A+ to AA-.

According to Fitch, the revision from positive to stable reflects Akron Children’s “continued liquidity growth, strong historical operating performance and above median debt service coverage.”

The rating cites Akron Children’s current construction project to nearly double the size of its Considine Professional Building, which will be complete in April 2018. Fitch believes the hospital has enough capacity at the higher rating to absorb the financial impacts of the $84 million construction project.

“The upgrade of Akron Children’s Hospital’s bond rating to “AA-“ status is a significant achievement for the organization and represents the strong support for our pediatric services among families of northeast Ohio,” said Mike Trainer, Akron Children’s chief financial officer and treasurer. “The Akron Children’s Board of Directors and management team continue to demonstrate excellent fiscal stewardship commensurate with the trust bestowed by the communities we serve.”

Over the past four years, Akron Children’s revenues have increased by 29 percent due to its continued service line expansion, the opening of additional locations, and collaborations with adult providers. And despite the increasingly competitive market, Akron Children’s pediatric market share grew 31.6 percent from 2008 to 2016, reaching 81.3 percent in its 10-county primary service area.

The full rating review can be read here.