El Camino Healthcare District Receives AA- Rating from Standard & Poor’s
Mountain View, CA -September 9, 2013–Standard & Poor's Ratings Services (S&P) has affirmed its AA- underlying rating (SPUR) for the 2006 general obligation (GO) bonds issued for El Camino Healthcare District (formerly referred to as the El Camino Hospital District). The outlook for the District is stable.
"This extremely favorable rating reflects the District's strong financial performance, which we have achieved over the past few years through careful management of District-owned entities," said Michael King, chief financial officer, El Camino Healthcare District. "The District prides itself on being responsible stewards of taxpayer dollars and the S&P report affirms that we continue to meet our financial obligations."
According to S&P, this rating reflects the following key factors:
- Strong operating margins for El Camino Hospital, with a $68 million operating surplus for fiscal 2012;
- Strong operating margins and liquidity with unrestricted cash and investments of $599 million as of May 31, 2013, representing 360 days' cash on hand;
- Low net direct debt burden - based on outstanding GO bonds – at 1% percent of market value;
- Good economic fundamentals in the operating environment, with above average income indicators.
The report gives a 'stable' outlook for the District, citing a good market position and an operating plan that will likely ensure stability going forward.
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The El Camino Hospital District was established by voter approval in 1956 in accordance with California Local Hospital District Law. The purpose of the District is to establish, maintain and operate or provide assistance in the operation of health facilities and other health care services provider, groups and organizations that are necessary for the maintenance of good physical and mental health in the communities served by the District. The District, now known as El Camino Healthcare District, encompasses most of Mountain View, Los Altos, Los Altos Hills; a large portion of Sunnyvale, and small sections of Cupertino, Santa Clara, and Palo Alto. The publicly elected El Camino Healthcare District Board of Directors approves tax dollar expenditures, including expenditures for the award winning Community Benefit program. Community Benefit funds are granted each year to local nonprofits, schools and government programs that provide critical health services to the underserved. All District Board meetings are publicly noticed, open to the public, and available for viewing on the District website.