The Whidbey Island Public Hospital District (WhidbeyHealth) has received an update to their annual analysis from Moody’s Investor Service. Moody’s has adjusted their initial assessment to reflect its belief that the district is now positioned to avoid default on its $6.8 million bond anticipation notes (BANS) due January 1, 2022, but now extended ninety (90) days to September 1. Repayment terms with Heritage Bank are under discussion.
Moody’s reassessment confirmed their belief that the district’s weak financial position has uncertain long-term prospects of repaying unlimited tax general obligation (GOULT) bonds of $44.9 million and $12.3 million of the limited tax general obligation (GOLT) bonds. The GOULT rating was downgraded one notch to Ba3, while the GOLT rating remained unchanged.
“We are pleased to receive the latest release from Moody’s today,” stated Jim Childers, Interim CFO. “Moody’s reassessment confirms the beneficial work towards long-term financial sustainability that the district’s leadership has been working towards and acknowledges the improvements in cash flow through year end 2022.”
The current belief by Moody’s is attributed to a new management company and management team, as well as significant updates to the district’s strategic plan for meaningful budgetary realignments, cost controls and revenue growth. Moody’s may opt to revisit the district’s rating infrastructure as WhidbeyHealth continues to implement their financial turnaround measures – demonstrating timely repayment of outstanding debt, stabilizing and improving cash flow, improving financial reporting practices, and improving medical staff relations.
Moody’s Investor Service (MIS) is a global provider of credit ratings, research and risk analysis. A rating from Moody’s enables issuers to create go-to market debt strategies with the ability to capture wider investor focus and provides investors with a comprehensive view of global debt markets through ratings and research.
Media inquiries: Conor O’Brien at obrienc@conorobrien
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