Floyd Memorial Receives A- Rating and Stable Outlook from Standard & Poor’s

February 24, 2010

Standard & Poor’s recently reviewed the bond rating for Floyd Memorial Hospital and Health Services and affirmed its ‘A-’ rating and upgraded the facility outlook from negative to stable. An ‘A’ rating means that the organization has a strong capacity to meet financial commitments and its stable outlook “reflects a continued strong business position.”

According to Standards & Poor’s, “The outlook reflects the increasing patient admissions and inpatient surgeries…coupled with a balance sheet that has strengthened over the last couple of years.” The rating also reflects solid debt service coverage, increased market share with dominant market share in Floyd County and solid operating margins.

“Floyd Memorial has worked diligently to take the necessary steps to improve its financial strength, market share and commitment to clinical quality to maintain its Standard & Poor’s rating and gain a more positive outlook as a strong, viable organization,” said Jerrol Z. Miles, chairman of Floyd Memorial’s Board of Trustees. “By increasing the number of board members with financial backgrounds to recruiting specialists to meet the health needs of the community, Floyd Memorial has met the growing demands of the market from both a fiscal and clinical quality perspective.”

Standard & Poor’s is the world’s foremost provider of independent credit ratings, indices, risk evaluation, investment research and valuations. A credit rating is Standard & Poor’s opinion on the general creditworthiness of the obliger, or the creditworthiness of an obliger with respect to a particular debt security or other financial obligation.