St. Francis Regional Medical Center's Bond Rating Upgraded to BBB+

Standard & Poor's Ratings Services raised its long-term rating from 'BBB' to 'BBB+' on Shakopee, Minnesota’s $49 million series 2004 healthcare facilities revenue bonds, issued for . The outlook is stable.

"The rating action reflects our view of facility investments that will strengthen St. Francis’ presence in its demographically favorable service area, consistently healthy operational performance and continued strong maximum annual debt service," said Standard & Poor's credit analyst Avanti Paul.

The 'BBB+' rating further reflects Standard & Poor’s view of St. Francis:

• Good area demographics that include a growing service area population, favorable wealth indicators and low unemployment rates;

• Facility investments, with the addition of a new clinic and another under construction, along with physician recruitments that should help sustain St. Francis’ volumes and maintain its competitive position;

• History of healthy operating margins and continued strong cash flows;

• Strong leadership in the form of ownership structure (Allina, Essentia and Park Nicollet), administration, strategic planning, physician networks and religious identity.

“St. Francis is very pleased to have our bond rating upgraded, and sees it as validation of our continued strong financial performance. This upgrade comes at a time when the healthcare industry as a whole is being negatively affected by a stagnant economy, higher levels of uninsured and underinsured patients, declining reimbursement from payors, cost cutting pressures and healthcare reform uncertainty,” said Cindy Vincent, St. Francis vice president of finance and operations. 

For more information about St. Francis, visit www.stfrancis-shakopee.com or the hospital’s Facebook page at http://on.fb.me/GzHhlZ.