Fitch Ratings said Tuesday it is “watching” closely how William H. Backus Hospital handles its long-term debt now that the health care provider is affiliated with Hartford Healthcare.
The “watch” rating on Backus’ $63 million in debt, however, isn’t a red flag on the hospital’s current financial position. In fact, Fitch said Backus’ “financial performance and profile is excellent,” and its overall debt burden is considered “light.”
The hospital’s bonds currently carry an overall “A+” rating.
Still, Fitch analysts want to see if Hartford Healthcare agrees to refinance and absorb Backus’ debt, like Hartford Healthcare has done with other hospitals it’s brought under its wings in recent years.
“[William H. Backus Hospital] is considering refinancing its outstanding debt and joining Hartford’s obligated group, but this is still under review and no new money is expected at this time,” Fitch said.
