Local hospital receives improved bond rating

By Steve Moyer

Nevada Daily Mail

The Nevada Regional Medical Center was recently awarded a BBB-minus rating from Standard and Poor's, a credit risk analysis and credit rating company. Ratings of AAA, AA, A and BBB are given to the organizations that have the strongest ability to repay the bond. Ratings of BB, B, CCC, CC and C are given to more speculative securities. The rating of D is for bonds that are in payment default.

NRMC is currently in the process of Advance Refunding Series 2001 Bonds.

Advanced bond refunding is a financing technique that allows an issuer to obtain the benefit of lower interest rates when outstanding bonds are not currently callable. NRMC will refinance the $20 million in bonds issued in 2001. The lower interest rate will save NRMC more than $2 million.

Part of the bond refunding process has included an in-depth look at NRMC's financial position by Standard & Poor's. The rating will allow NRMC to issue new bonds with the investment grade rating, making the bonds more attractive, with less risk to the individual investor.

"The time is right for bond refunding. Interest rates are much lower and we expect to save more than $2 million for the hospital," said Judy Feuquay, NRMC CEO. "We're very proud of the 'BBB-minus' rating. It is extremely good for a hospital our size. Standard & Poor's reviewed our financials, operations, our medical staff, every aspect of what we're doing and how we're doing it. We are very pleased with the results and our proud to share the good news."

Series 2007 Bonds will be available in denominations of $5,000 with varying rates and terms and will be exempt from both federal and state taxes.

The NRMC board of directors voted in December to proceed with the bond refunding proposal offered by Edward D. Jones since that proposal offered better terms if the hospital received an investment grade rating, which it did.

During the December special meeting board member Ron Fisk said he thought the Edward D. Jones proposal looked like it would be a better deal for the hospital.

"I just feel it would be like leaving money on the table to accept the A.G. Edward's proposal," Fisk said. "The Edward Jones deal looks like we'd be much better off."

For more information, please contact a local Edward Jones office.