A second financial rating bolstered Johns Hopkins Health System this week after Standard and Poor?s downgraded Hopkins? debt last week.
Fitch Ratings Inc. gave Johns Hopkins a AA- rating on $182 million worth of bonds, adding that the ratings outlook is stable.
Officials from Johns Hopkins verified the ratings but were not immediately available for comment. A third rating from Moody?s investment services was expected today.
The Fitch rating affects 2007 bonds to be issued by the Maryland Health and Higher Educational Facility Authority and insured by FGIC Insurance Corp., whose insurer financial strength is rated AAA by Fitch.
The ratings come as Hopkins plans a $1 billion-plus expansion of its hospital system including a new children?s hospital tower, cardiovascular and critical care tower for adults and other facilities.
The project, begun in 2006, has been described as the most ambitious project by the 120-year-old institution to date. Fitch?s rating affirmation incorporates the proposed issuance of approximately $340 million of bonds expected to be issued in calendar year 2008 to cover the redevelopment program through 2012.
JHHS expects to fund the balance of capital costs through a combination of state grants, philanthropy and internal cash flow.
