With Johns Hopkins Health System poised to issue $500 million in new bonds next week, Fitch Ratings gave the them an AA- rating and reaffirmed that rating on all of Hopkins outstanding debt.
Johns Hopkins plans to use the proceeds of the offering for strategic purposes, including future capital needs. It has a capital budget of $400 million for each of the next two years as it builds a proton therapy center at Sibley Hospital in Washington, D.C., and redevelops Suburban Hospital's Bethesda campus.
The ratings agency cited Johns Hopkins' reputation, financial performance, and liquidity as key ratings drivers.
Hopkins reported operating income of $80 million in fiscal 2016, down from $121.9 million the year before, according to financial details included in Fitch's explanation of its rating. The health system had $2.86 billion in unrestricted cash and investments as of June 30.
After the bond issue, Johns Hopkins will have more than $2.1 billion in debt.
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