- Published on Wednesday, 18 September 2013 01:30
- Written by Los Altos Town Crier Staff - Town Crier Report
Standard & Poor’s Ratings Services recently affirmed an AA- underlying rating for the 2006 general obligation bonds issued for the El Camino Healthcare District.
Overall, the outlook for the district is stable.
“This extremely favorable rating reflects the district’s strong financial performance, which we have achieved over the past few years through careful management of district-owned entities,” said district Chief Financial Officer Michael King. “The district prides itself on being responsible stewards of taxpayer dollars, and the S&P report affirms that we continue to meet our financial obligations.”
According to S&P, the rating reflects the following key factors.
• Strong operating margins for El Camino Hospital, with a $68 million operating surplus for fiscal year 2012.
• Strong operating margins and liquidity, with unrestricted cash and investments of $599 million as of May 31, representing 360 days’ cash on hand.
• Low net direct debt burden – based on outstanding general obligation bonds – at 1 percent of market value.
• Good economic fundamentals in the operating environment, with above-average income indicators.
The report offered a stable outlook for the district, citing a good market position and an operating plan that will likely ensure stability going forward.
For more information, visit elcaminohospitaldistrict.org.