Standard & Poor’s Upgrades Rating on OHSU Revenue Bonds
10/06/10 Portland, Ore.
Designation boosted to A from BBB+ reflecting the university’s solid financial performance
Oregon Health & Science University’s improved financial performance resulted in an upgraded rating for its outstanding revenue bonds. Standard & Poor’s raised the rating to A from BBB+.
“This is a strong endorsement of all aspects of OHSU, including the value of the missions to Oregonians, the strength of our faculty and staff, and our financial plan,” said OHSU President Joe Robertson, M.D., M.B.A.
In announcing the rating change, Standard & Poor’s cited OHSU’s improved operating performance and overall financial profile. The factors it considered in the decision were, among other things, strong demand for education and specialty health-care services, OHSU’s diverse portfolio of revenue sources, including strong hospital operations, as well as a solid management team that is working to contain costs.
The new rating represents a two-level increase. The credit rating agency advanced the grade on OHSU’s debt from BBB+ to A, bypassing the A- rating.
“In my 30-plus years in finance, I've never seen a two-notch increase,” said Pitt Calkin, OHSU’s interim chief financial officer.
Oregon Health & Science University is the state’s only health and research university, and Oregon’s only academic health center. OHSU is Portland's largest employer and the fourth largest in Oregon (excluding government). OHSU's size contributes to its ability to provide many services and community support activities not found anywhere else in the state. It serves patients from every corner of the state, and is a conduit for learning for more than 3,400 students and trainees. OHSU is the source of more than 200 community outreach programs that bring health and education services to every county in the state.