St. Clair Health ‘AA’- Bond Ratings Affirmed by S&P Global and Fitch Ratings

Despite headwinds caused by the pandemic, St. Clair Health’s ‘AA’- bond ratings were recently affirmed by S&P Global Ratings and Fitch Ratings. The bonds carry a stable outlook, according to both rating agencies.

In its April 9 news release, S&P said St. Clair’s ‘AA’- rating “reflects our view of St. Clair’s stable market share with a niche position as one of the largest independent providers in the greater Pittsburgh region with excellent quality metrics, successful physician recruitment and a focused strategy of continuing to build market share with outpatient growth and remain the low cost and high quality provider for its service area.”

In its April 19 news release, Fitch Ratings said: “The affirmation of the ‘AA’- revenue bond rating are driven by St. Clair’s very strong financial profile assessment, solid market position in the competitive greater Pittsburgh area healthcare market and robust operating performance … Further revenue growth is expected, supported by continued service line expansion and the new (Dunlap Family) outpatient center that is opening in May.”

St. Clair’s total operating revenue for the most recent year ended June 30, 2020 was $357 million.  St. Clair’s total long-term debt at December 31, 2021 equals $115 million, is largely fixed rate, and includes Mount Lebanon Hospital Authority, Pa.’s series 2012 and series 2018 revenue bonds, issued for St. Clair.

“We are pleased with the rating action, especially with S&P’s negative outlook for the healthcare industry, and with the rating changes for downgrades outpacing upgrades by more than five to one for CY2020-2021YTD,” said St. Clair Health Senior Vice President and Chief Financial Officer Richard C. Chesnos.