Fitch blesses Western CT Health Network debt

Fitch Ratings on Wednesday blessed $46 million in long-term debt that Danbury and New Milford hospitals plan to issue to fund a $150 million renovation project.

New York-based Fitch assigned an ‘A’ rating to the series M revenue bond proceeds for the hospitals’ Western Connecticut Health Network (WCHN) that are being issued thorough the Connecticut Health and Educational Facilities Authority.

WCHN will use the funds, along with $129 million in bank loans, and a $25 million equity contribution to finance the cost of a new $150 million bed tower project and to refund outstanding debt.

The bonds are expected to be priced June 27.

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In addition, Fitch assigned an ‘A’ rating to about $80 million in WCHN’s outstanding debt, saying the high marks reflect its strong market position, good network strategy, and moderate debt burden.

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