Fitch Upgrades Rady Children’s Bond Rating to AA-
Credit Ratings Agency Cites Strong Market Position, Affiliation with UC San Diego, Philanthropic Support, and Financial Performance
San Diego – October 15, 2014 – Fitch Ratings has upgraded the rating on Rady Children’s Hospital- San Diego’s outstanding debt to AA- with stable outlook from A+ with positive outlook in recognition of the organization’s strong financial performance, its market position, and reputation.
“We’re pleased with Fitch’s upgrade because it shows our community and donors they are making a sound decision when they choose to invest in Rady Children’s,” said Donald Kearns, M.D., President of Rady Children’s.
Among the key factors Fitch cited as driving the upgrade were:
- Market position: Rady Children’s serves 88 percent of the children needing pediatric specialty care in San Diego County. That number has grown due to increasing adult partnerships and physician alignment initiatives.
- Academic and physician alignment: The Hospital is affiliated with UC San Diego and serves as the primary pediatric teaching hospital for the School of Medicine. This clinical affiliation is a major driver of Rady Children’s enhanced reputation due to its teaching and research activities.
- Philanthropic support: Rady Children’s recently received a $120 million gift from Ernest Rady and family, which will be used to establish the Rady Pediatric Genomics and System Medicine Institute at Rady Children’s.
- Sustained strong financial profile: The rating upgrade is based on Rady Children’s continued strong overall financial profile with good liquidity, strong profitability and debt service coverage ratios that compare favorably to the ‘AA’ category medians.
ABOUT RADY CHILDREN’S HOSPITAL-SAN DIEGO
Rady Children’s Hospital-San Diego is a 520-bed pediatric care facility providing the largest source of comprehensive pediatric medical services in San Diego, Southern Riverside and Imperial counties. Rady Children’s is the only hospital in the San Diego area dedicated exclusively to pediatric healthcare and is the region’s only designated pediatric trauma center. In June 2014, U.S. News & World Report ranked Rady Children’s among the best children’s hospitals in the nation in all 10 pediatric specialties the magazine surveyed. For more information, visit www.rchsd.org.
Media Contact: Carlos Delgado