Ward County, North Dakota
CUSIP 934023ET5
- Issue Currency: United States of America Dollars
- Announcement Date: 17-Dec-2018
- News: S&P Global Ratings` long-term rating on Ward County, N.D.`s series 2017C fixed-rate revenue bonds, issued for Trinity Health (Trinity), is `888-`. The outlook is stable. Since last December`s issuance of the $350 million 2017C bonds, Trinity Health has commenced construction of a new six-story replacement hospital for its flagship campus in Minot. In addition to modernizing the hospital`s dated facilities, the new project will consolidate Trinity`s two existing downtown campuses, increase surgical capacity, and allow for significant operating efficiencies. The rating is based on Trinity Health`s dominant market share-albeit in a smaller, more rural primary service area-supported by solid medical staff integration through employment. Trinity Health`s performance can be characterized by continued healthy operating margins that remain strong for the rating despite generally flat volumes. We expect operating margin to remain positive in coming years, which we view as increasingly important given Trinity`s high debt load following the issuance of the 2017C bonds, which pushed leverage to 66% and pressured unrestricted reserves to long-term debt to 38 as of Oct. 31, 2018. Both levels are weak for the rating, though we expect incremental improvement in the coming years. Moreover, maximum annual debt service (MADS) coverage remains tight despite the ongoing operating stability, with coverage generally near or below 1.Sx. We anticipate margins will weaken to a new baseline once the replacement hospital is operationalized and capital costs come online
- Issue Currency: United States of America Dollars
- Announcement Date: 17-Dec-2018
- News: S&P Global Ratings` long-term rating on Ward County, N.D.`s series 2017C fixed-rate revenue bonds, issued for Trinity Health (Trinity), is `888-`. The outlook is stable. Since last December`s issuance of the $350 million 2017C bonds, Trinity Health has commenced construction of a new six-story replacement hospital for its flagship campus in Minot. In addition to modernizing the hospital`s dated facilities, the new project will consolidate Trinity`s two existing downtown campuses, increase surgical capacity, and allow for significant operating efficiencies. The rating is based on Trinity Health`s dominant market share-albeit in a smaller, more rural primary service area-supported by solid medical staff integration through employment. Trinity Health`s performance can be characterized by continued healthy operating margins that remain strong for the rating despite generally flat volumes. We expect operating margin to remain positive in coming years, which we view as increasingly important given Trinity`s high debt load following the issuance of the 2017C bonds, which pushed leverage to 66% and pressured unrestricted reserves to long-term debt to 38 as of Oct. 31, 2018. Both levels are weak for the rating, though we expect incremental improvement in the coming years. Moreover, maximum annual debt service (MADS) coverage remains tight despite the ongoing operating stability, with coverage generally near or below 1.Sx. We anticipate margins will weaken to a new baseline once the replacement hospital is operationalized and capital costs come online.
- Issue Currency: United States of America Dollars
- Announcement Date: 17-Dec-2018
- News: S&P Global Ratings` long-term rating on Ward County, N.D.`s series 2017C fixed-rate revenue bonds, issued for Trinity Health (Trinity), is `888-`. The outlook is stable. Since last December`s issuance of the $350 million 2017C bonds, Trinity Health has commenced construction of a new six-story replacement hospital for its flagship campus in Minot. In addition to modernizing the hospital`s dated facilities, the new project will consolidate Trinity`s two existing downtown campuses, increase surgical capacity, and allow for significant operating efficiencies. The rating is based on Trinity Health`s dominant market share-albeit in a smaller, more rural primary service area-supported by solid medical staff integration through employment. Trinity Health`s performance can be characterized by continued healthy operating margins that remain strong for the rating despite generally flat volumes. We expect operating margin to remain positive in coming years, which we view as increasingly important given Trinity`s high debt load following the issuance of the 2017C bonds, which pushed leverage to 66% and pressured unrestricted reserves to long-term debt to 38 as of Oct. 31, 2018. Both levels are weak for the rating, though we expect incremental improvement in the coming years. Moreover, maximum annual debt service (MADS) coverage remains tight despite the ongoing operating stability, with coverage generally near or below 1.Sx. We anticipate margins will weaken to a new baseline once the replacement hospital is operationalized and capital costs come online.
