Fitch upgrades Universal Health Services to BBB+

Fitch upgraded Universal Health Services' senior unsecured debt to BBB+ from BBB and put the rating outlook as stable. In September 2000, Fitch changed UHS' rating outlook to positive from stable, citing the company's strong operating performance, demonstrated success in integrating acquisitions and continued adherence to a strategy of concentrating its operations in fast growing markets where it can achieve market-leading positions.

Since then, UHS has continued its strong operating performance and credit statistics have remained strong despite additional borrowings, Fitch noted. Fitch also noted that UHS' operating margins have remained stable despite cost pressure stemming from labor and supply expense and cash flow remains robust. In June 2000, UHS issued $255 million convertible debentures. Funds from the offering were used to repay bank debt and fund acquisitions, resulting in about $150 million of incremental debt. Despite the incremental debt, the issue had a limited impact on the company's interest coverage and leverage. Credit statistics have remained strong, Fitch said, noting that for the 12 months ended June 30 UHS' coverage (EBITDA/interest) was 10.7 times, leverage (total debt/EBITDA) was 1.7 times with total long-term debt of around $664 million at June 30. Free cash flow (defined as cash from operations less interest, capital expenditures and changes in working capital) was approximately $209 million for the 12 months ended June 30.

S&P puts ACE Ltd. on watch, negative

Standard & Poor's Corp. has placed it's A- issuer credit, A-2'commercial paper, A- senior unsecured debt and BBB preferred stock ratings for ACE Ltd. on watch with negative implications. Also, S&P placed it's A+ counterparty credit and financial strength ratings for ACE Bermuda Insurance Ltd., Ace Ltd.'s core subsidiary, on watch with negative implications. S&P said the actions reflect a review of potential effects on ACE's consolidated capital adequacy based on ACE's recent announcement to increase its loss estimate related to the catastrophe at he World Trade Center.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.