October 2011

Credit-Rating Agencies Reaffirm CHI’s AA Ratings


The “big three” credit-rating agencies – Fitch Ratings, Moody’s Investor Service and Standard & Poor’s – have reaffirmed CHI’s AA credit rating, which allows CHI to borrow funds at lower rates for capital construction and other important needs.

In maintaining the strong rating, the agencies cited CHI’s management team and geographic diversification across 19 states. In its report, Moody’s also pointed to CHI’s “strong mix of facilities located in both rural and urban settings” and an “established corporate management team.” The Fitch report cited CHI’s “superior business strategies supported by a robust IT platform.” The report added that “management has taken a proactive position on the development of alternative revenue sources in non-acute care business lines, strong expense control and constant quality improvement while expanding its market throughout the country through an effective acquisition strategy.”

The AA rating is especially significant considering a recent report by Moody’s that described a negative outlook for nonprofit hospitals due to lagging revenue growth and patient volumes across the industry. CHI employees can view the three credit-rating agency reports on Inside CHI (National Groups/Finance/Treasury/2011 Rating Reports).