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Allina Hospitals & Clinics receives strong debt ratings
MINNEAPOLIS 08/14/2007--Citing the organization's leading market position, clinical breadth and reputation, strong medical staff and improved financial performance, the three major bond-rating agencies have reaffirmed, and in one case upgraded, their ratings of existing Allina debt securities. In addition, the agencies have issued strong ratings for new bonds Allina Hospitals & Clinics will offer in the market this September.
- Standard & Poor's rates the new offering an "A," and has upgraded existing bonds from "A minus" to "A."
- Fitch Ratings rates the new offering an "A," and has reaffirmed the existing bonds at "A."
- Moody's Investors Service rates the new offering an "A2," and has reaffirmed the existing bonds at "A2." Moody's "A2" is equivalent to an "A" rating from Standard & Poor's and Fitch Ratings.
All three rating agencies list their outlook on all Allina bonds as "stable."
"The rating agencies have taken note of our strong financial performance in the first half of 2007," said Allina President and CEO Dick Pettingill. "These ratings will be important as we issue new debt to help fund our capital priorities going forward."
Bonds support hospital and clinic building projects
This fall, Allina plans on issuing approximately $125 million in new bonds to help finance such projects as...
Stronger debt ratings decrease the cost of capital, making it more affordable for Allina to fund these and other projects. As part of this process, Allina also plans to refinance approximately $360 million in existing bonds.
Favorable comments from Fitch Ratings, Moody's, Standard and Poor's
Fitch Ratings said, "The 'A' rating reflects Allina's leading market position in the Twin Cities metropolitan area, historically solid core operating performance, successful development of its electronic medical records platform and strong management practices."
Moody's cited Allina's "clinical breadth and reputation... good historical inpatient volume growth... and historical trend of improving operations."
Standard and Poor's noted that Allina has "a stable governance and management team that has raised Allina's profile in the market with the successful opening in mid-year 2005 of the new Abbott Northwestern Heart Hospital, and the near-full implementation of the Excellian integrated electronic medical record throughout most of the health system."
"Clearly, our commitment to creating a truly integrated health care system, as well as system-wide initiatives like our electronic medical record, have created a favorable impression of Allina among the rating agencies," said Pettingill. "Our continued strong credit ratings are good news for our patients, physicians and employees, who will be the primary beneficiaries of this added financial flexibility."
About Allina Hospitals & Clinics
Allina Hospitals & Clinics is a not-for-profit system of hospitals, clinics and other health care services, providing care throughout Minnesota and western Wisconsin. Allina owns and operates 11 hospitals, 65 clinics and health care services, including home care, hospice and palliative care, oxygen and medical equipment, pharmacies and emergency medical transportation. More about Allina and the latest health information can be found online at www.allina.com.
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