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Rex Healthcare Earns Strong A+ Bond Rating from Standard & Poor’s

Feb. 7, 2013

Contact: Alan M. Wolf
(919) 784-4467

RALEIGH, N.C. – Standard & Poor's Ratings Services affirmed its A+ rating on Rex Healthcare, citing Rex's strong financial performance and beneficial affiliation with UNC Health Care.

S&P also maintained its stable outlook on Rex's $119.9 million in debt. Last year, two other bond-rating agencies also affirmed their top ratings for Rex. Fitch Ratings has an A+ rating and Moody's Investors Services has an A1 rating.

"S&P's rating reinforces our strategy of providing excellent and efficient care and services for all our patients," said Rex Chief Financial Officer Bernadette Spong. "Our co-workers and physicians deserve credit for making Rex the hospital of choice for families across Wake County and beyond."

The S&P report notes that Rex also benefits from a "robust regional economy" and its management by a "strong group of senior leaders." The increasing collaboration with UNC Health Care is helping Rex succeed amid changes due to national health reform. While Rex has followed industry trends and seen decreased inpatient volumes in some areas, its outpatient visits rose by nearly 15 percent in 2012. Rex also is seeing significant growth in specialty areas such as heart and vascular and oncology, and expects that key physicians in cardiovascular surgery and neurosurgery should boost future volume, S&P analysts wrote.

"We consider Rex's overall enterprise and financial profiles to be strong, bolstered by solid local demographics that we believe will lead to continued population growth in the service area. In addition, Rex has posted healthy earnings from operations for the past several fiscal years," S&P analysts wrote. "The stable outlook reflects our view of Rex's ongoing leading market share in Wake County, despite competition in the area, and its history of maintaining a strong financial profile."