Dayton hospital network gets ‘A’ bond rating

Dayton-based Premier Health received an “A” rating on bonds that the health network plans to issue.

Premier is seeking to borrow the money to refinance existing debt. The nonprofit operates Miami Valley Hospital, Upper Valley Medical Center and Atrium Medical Center, as well as other health services, and had about $1.8 billion in revenue in 2018.

Credit ratings, such as the Premier bond rating issued by Fitch, are an indicator of how a company is doing financially, since they are the credit rating company's best estimate of whether a business is able to pay back the money owed.

The highest rating available is an AAA rating.

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When explaining the reasoning behind its rating, Fitch stated that Premier Health “is in a near market share parity position in a multi-county primary service area (PSA) around Dayton, with a formidable competitor present. The service area characteristics are somewhat mixed although broadly stable.”

Fitch said Premier has a track-record of strong operating margins, though its margins have been compressed since fiscal 2017.

However, Fitch stated that Premier “is showing recovery in interim fiscal 2019, and significant improvement is expected. Capital spending plans are manageable, but long-term needs may grow.”

Premier said in a statement that “the ‘A’ stable rating by Fitch affirms Premier Health’s strategy to be the top health care organization in southwest Ohio. Whether it is the area’s only Level 1 trauma center, broad network of hospitals, system of highly trained staff and physicians, or easily accessible urgent cares, Premier Health offers various options to meet the needs of our community.”

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