Article: Fitch Affirms Alexian Brothers Health System IL Revs at 'A-'.

Fitch Ratings has affirmed the 'A-' rating on Alexian Brothers Health System's (ABHS) outstanding revenue bonds. The Rating Outlook is Stable.

The affirmation reflects a significant turnaround in financial performance over the last year and a half, which produced positive profitability ratios, enhanced debt service coverage and stabilized liquidity. For the eight months ended Aug. 31, 2009 (the interim period), ABHS's operating margin improved to 3.0%, up sharply from 0.5% for fiscal 2008. Operating EDITDA coverage of maximum annual debt service (MADS) was 3.0 times (x) for the interim period, up from 2.5x and 1.0x for fiscal (FY) 2008 and FY 2007, respectively. ...

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