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Proceeds from the current sale of $45 million in new bonds will allow PMC to equip and build out three additional floors in the clinic as well as paying for additional floors in the parking garage. In addition to receiving an MIG 1 rating, Moody's Investor Service listed PMC's outlook as stable based on the hospital's growth and strong financial position.
Moody Investor Service also affirmed the A3 long-term rating assigned to PMC's $88.4 million of outstanding 2011 fixed rate revenue bonds. This rating is based on PMC's strong and leading market share.
These ratings come at a time when other nonprofit organizations' bond ratings are being significantly downgraded. A Feb. 18, 2013 article in "Nonprofit Quarterly" stated that Moody's Investor Service downgraded a record $20 billion in nonprofit hospital debt in 2012, "reflecting a 'negative outlook' from Moody's on nonprofit hospitals for the past five years."
PMC President/CEO Walter E. May stated, "We're pleased that at a time when other nonprofit organizations are being downgraded, Moody's Investor Service is giving Pikeville Medical Center the highest rating possible MIG 1. We are excited to be able to offer the conveniences of the new clinic to our patients."
Moody's Investor Service identified the following strengths for Pikeville Medical Center in its report:
Dynamic Chief Executive Officer (CEO) that has defined current culture, upgraded the physical plant, enhanced services, added physicians and built a capable executive management team
Holds a strong and leading 68% market share in Pike County and a leading 31% market share in its extended seven-county primary service area
Regional provider of expanding health care services with a strong focus on cardiac and oncology designated centers
Successful recruitment of physicians, which is enhancing the hospital's service lines, increasing referrals from smaller area hospitals and reducing the incidence of patients traveling to tertiary providers in Lexington, KY, Huntington, WV and Kingsport, TN.
Moody's Investors Service is a leading provider of credit ratings, research, and risk analysis.
The firm's ratings and analysis track debt covering more than 115 countries, 10,000 corporate issuers, 22,000 public finance issuers and 82,000 structured finance obligations.