Vermont Health System's Borrowing Could Hurt Rating

D'Ambrosio, Gillian
May 2003
Bond Buyer;5/5/2003, Vol. 344 Issue 31628, p4
Trade Publication
The A-level credit rating of Fletcher Allen Health Care (FAHC) Inc., Vermont's largest health care system, could be in risk if it follows through on plans to borrow 85 million dollars in 2004 to improve liquidity, according to a debt capacity study conducted by a financial advisory firm. Financial advisory firm Kaufman, Hall & Associates Inc. noted that the organization �has essentially no debt capacity in 2004� in a copy of the report linked to FAHC's Web site. The firm filed the results of the study with the state. The firm also �anticipated a credit downgrade� and �assumed the interest rate of this borrowing to reflect current BBB rated yields for 30-year fixed-rate, tax-exempt bonds.�


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