Covenant Health recently announced that S&P Global Ratings raised the long-term rating and underlying rating to “A” from “A-” on the health system’s series 2006A-1, 2011C and 2012A bonds. Ratings services assign bond ratings based on an organization’s financial strength and performance outlook.
“We are certainly pleased with this rating upgrade. The ‘A’ rating from S&P Global gives Covenant Health the highest bond rating among healthcare organizations in the East Tennessee area,” said John Geppi, Covenant Health executive vice president and chief financial officer.
The bond rating review process included an assessment of Covenant Health’s management and operations, financial profile and balance sheet, market share, admissions and utilization of services, as well as S&P’s forecast of future performance.
A higher bond rating enables Covenant Health to fund facility expansions or major projects at continued lower interest rates and overall cost of capital, enhancing the health system’s ability to provide excellent care, Geppi explained. “The ‘A’ rating is an affirmation of S&P’s confidence in our financial stability and in the future of Covenant Health,” he said.