Lowell General Hospital Announces Strong Bond Rating

Sept. 3, 2010 - PRLog -- Lowell General Hospital’s Chief Financial Officer, Susan Green, announced today that she was pleased with the improved outlook given to the hospital by two leading Investment Services, Standard & Poor’s and Moody’s.  The financial outlook, which improved from negative to stable, highlights the overall financial strength of the organization. “We have worked diligently to remain financially strong when many in our industry are having difficulties. We see this as a strong vote of confidence in our organization from the investment community,” said Green.

Standard & Poor’s, which gave the hospital a BBB+ rating, with a stable outlook, noted rising earnings and cash flow improvements among its considerations. While Moody’s Investor Services lowered its rating of the hospital from A3 to Baa1, they also improved Lowell General’s outlook to stable, bringing the hospital’s two bond ratings in parallel.  

“A bond rating change is a natural outgrowth of any organization taking on new debt,” said Green.  “We fully anticipated our upcoming borrowing to impact our bond rating and so we are pleased to be measured so favorably in light of the expansiveness of our project and the funding we are seeking.” The bond ratings have been assigned to Lowell General Hospital’s $115 million of Series 2010C and D bonds to be issued by the Massachusetts Health & Educational Facilities Authority to finance the hospital’s previously announced expansion.  

Lowell General is in a very strong and stable financial position, and these ratings reaffirm their bonds at an investment grade, which will allow the hospital to access capital at significantly lower interest rates.  Lowell General has shown positive operating results for nine consecutive years. The hospital was recently named among the 25 top largest hospitals in Massachusetts and a Top Employer by the Boston Business Journal and Boston Globe.  

“The expansion will enhance our ability to deliver the highest quality care and meet changing patient needs, which will further strengthen the hospital’s position over the long term, and ensure that comprehensive and locally controlled healthcare will be available to greater Lowell residents now and into the future ” said Green.

Lowell General broke ground on the first phase of its historic expansion in June. The first new building, a six-story patient clinical care facility, will add more than 190,000 square feet of new space and feature increased surgical services suites, a new trauma and emergency center, a new outpatient services area, improved access for outpatients and visitors and three floors of private patient rooms. The new facility is scheduled to open in 2012.

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About Lowell General Hospital
Lowell General Hospital is an independent, not-for-profit, community hospital serving the Greater Lowell area and surrounding communities. The hospital encompasses ten buildings, the latest state-of-the-art technology and a full range of medical and surgical services for patients, from newborns to seniors, including: Trauma services, the Regional Center for Maternal and Pediatric Care in partnership with Floating Hospital for Children at Tufts Medical Center, the Cancer Center, and the Heart and Vascular Center. The main hospital campus offers 217 licensed beds, including 28 bassinets and a Level IIB Special Care Nursery. The hospital's satellite campus, Lowell General Chelmsford, offers a variety of outpatient services, including the Surgery Center, the Imaging Center, the Patient Service Center, the Center for Weight Management and Bariatric Surgery and Floating Hospital for Children's Pediatric Specialty Center.