Bellin Health Care Systems, Green Bay, Wisconsin

Moody’s Affirms A2 Bond Rating for Bellin Health

Outlook is stable; COVID performance, low debt cited in report

Moody’s Investors Service has affirmed Bellin Health’s A2 bond rating and issued a rating outlook of stable, citing multiple factors including a strong year-to-date recovery from the effects of the COVID-19 pandemic.

Released earlier this month, the rating reflects continued strength for Bellin’s bonds. In 2001, the health system was assigned a Baa1 rating, and it has been upgraded twice since that time.

In its ratings report on Bellin Health, Moody’s noted:
• Bellin is expected to maintain good cash flow margins supported by solid demand trends and a favorable payor mix, providing for ample coverage of a relatively low debt position
• Strong revenue growth and volume trends are expected with continued strong pandemic recovery
• As a low-cost provider with high acuity service offerings and an advantageous payor mix, a trend of stable profitability is likely to continue
• The health system has a disciplined approach to capital spending and no immediate plans for new borrowing, which will support Bellin’s good leverage and debt service coverage metrics

“The COVID-19 pandemic has presented unique challenges for health systems everywhere, but Moody’s recognized Bellin for our strong financial foundation, expert team and ability to adapt to co-exist with COVID-19,” said Bellin Health President & CEO Chris Woleske. “We know that serving our patients and communities requires a commitment to the highest quality care, best possible experience for our patients, and good stewardship of our resources.”