Fitch Ratings has upgraded to 'A-' from 'BBB+' the
approximately $202 million outstanding Hillsborough County Hospital
Authority hospital refunding revenue bonds (Tampa General Hospital
Project), series 2003. In addition, Fitch expects to assign a rating
to the $85 million Hillsborough County Industrial Development
Authority hospital revenue bonds (Tampa General Hospital Project),
series 2006. Fitch's analysis incorporated the proposed issuance of
the series 2006 bonds. Proceeds of the series 2006 bonds will fund the
purchase of a city parking garage, the construction of a new parking
garage and to complete the expansion of the hospital. The series 2006
bonds are expected to sell the month of May 2006 through negotiation
by Citigroup and Raymond James and Associates. The Rating Outlook is
Positive.
The rating upgrade to 'A-' reflects Tampa General Hospital's (TGH) continued strong operating profitability as reflected by operating margins at or better than 4% in each of the past four fiscal years, which is well in excess of Fitch's 'A' category median of 2.5%. TGH's utilization trends have been exceptional and have contributed to its solid operating performance. Additional strengths supporting the rating include a manageable debt burden, TGH's status as an essential, safety net teaching hospital, and sound management practices.
While TGH's financial position has improved substantially, primary credit concerns include its indigent case load and high Medicaid payor mix and competitive marketplace.
Located in Tampa, Florida, TGH is an acute-care hospital with 877 licensed beds. Total operating revenue in fiscal 2005 was $666 million. The hospital is one of four designated level I trauma hospitals in the State of Florida. The hospital's upcoming continuing disclosure agreement will provide quarterly disclosure to both Fitch and bondholders. There are no swaps outstanding.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria, and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance, and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
The rating upgrade to 'A-' reflects Tampa General Hospital's (TGH) continued strong operating profitability as reflected by operating margins at or better than 4% in each of the past four fiscal years, which is well in excess of Fitch's 'A' category median of 2.5%. TGH's utilization trends have been exceptional and have contributed to its solid operating performance. Additional strengths supporting the rating include a manageable debt burden, TGH's status as an essential, safety net teaching hospital, and sound management practices.
While TGH's financial position has improved substantially, primary credit concerns include its indigent case load and high Medicaid payor mix and competitive marketplace.
Located in Tampa, Florida, TGH is an acute-care hospital with 877 licensed beds. Total operating revenue in fiscal 2005 was $666 million. The hospital is one of four designated level I trauma hospitals in the State of Florida. The hospital's upcoming continuing disclosure agreement will provide quarterly disclosure to both Fitch and bondholders. There are no swaps outstanding.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria, and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance, and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.