Fitch affirms St. Tammany Health System’s ‘AA-’ credit rating

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Friday, August 9, 2024

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Fitch affirms St. Tammany Health System’s ‘AA-’ credit rating

STHS Communication Department, CommDept@stph.org

(STHS image)

COVINGTON – Fitch Ratings has affirmed the ‘AA-’ long-term rating on the series 2018A and 21018B bonds issued by St. Tammany Health System. In addition, Fitch affirmed the health system’s ‘AA-’ Issuer Default Rating, declaring the rating outlook to be stable.

In an analysis included with its announcement released Thursday (Aug. 8), Fitch wrote:

St. Tammany's 'AA-' rating reflects the system's strong operating risk assessment and very strong financial profile supported by consistently robust operating cash flows that have sustained good liquidity and debt service coverage, despite sector-wide headwinds over the past few years.

The rating also reflects St. Tammany's distinctly leading market share and very favorable payor mix in a rapidly growing service area. Revenue defensibility is also supported by St. Tammany's highly aligned medical staff, clinically integrated network, ambulatory strategy and its Joint Operating Agreement (JOA) with the Ochsner Clinic Foundation and Ochsner Health System (Ochsner).

Under the JOA, St. Tammany and Ochsner coordinate clinical services and share the combined operating income. St. Tammany also participates in Ochsner's MD Anderson Cancer Center partnership, as one of seven fully integrated MD Anderson partners in the U.S.

Fitch’s full assessment of St. Tammany Health System, known formally as St. Tammany Parish Hospital Service District No. 1, can be found at FitchRatings.com.

Founded in 1914, Fitch Ratings is one of the “Big Three” credit ratings agencies nationally recognized by the Securities and Exchange Commission. The others are Moody’s and Standard & Poor’s. 

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About St. Tammany Health System

The heartbeat of its community, St. Tammany Health System cares for patients and families with excellence, compassion and teamwork. It is nationally recognized for quality, safety and service excellence by CareChex, Leapfrog, Healthgrades, Hospital Compare, Women’s Choice and US News & World Report. The health system is home to 281-bed St. Tammany Parish Hospital Service District No. 1, three diagnostic centers and 12 medical clinics throughout western St. Tammany Parish. Self-supporting, not-for-profit STHS is AA- rated by Fitch and receives no tax funding. More at StTammany.health.

 

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