Kankakee Times

Rush System for Health (RUSH) has received a solid bill of economic health as Fitch Ratings has placed its rating system at stable with an Issuer Default Rating at ‘AA-.’

The rating is placed on approximately $448 million of 2015 A&B fixed-rate tax-exempt revenue bonds that have been loaned by the Illinois Finance Authority. The bonds were issued on behalf of RUSH along with $330 million of taxable series 2020 fixed rate revenue bonds issued directly by RUSH Fitch Ratings reported in a press release.

The stable outlook rating takes into consideration Fitch’s anticipation RUSH will remain profitable despite the effect of the COVID-19 pandemic. The feeling is it will remain profitable in the long term and that it is expected to be resilient against events including a downside scenario analysis.

Fitch noted the outbreak of the coronavirus created an uncertain and negative environment for the entire healthcare sector along with RUSH. The nation’s economy rebounded quicker than expected during the third and fourth quarters of 2020. The fast pickup of the economy in the second half of 2020 indicates an early recovery. In terms of the expectation for RUSH’s performance going forward, Fitch expects the rollout of the vaccine will have reached a sufficient scale by the middle of 2021. That will allow a sustained relaxation in both social-distancing and economic activity will allow the approach to what resembles an old normal by the middle of 2021.

Employment is expected to remain elevated over the middle term. Fitch’s ratings are considered forward looking and will incorporate revised expectations meeting future performance and the assessment of key risk. RUSH along with other not-for-profit acute care hospitals that continue to face uncertainty due to the pandemic along with its considerable pressure in the coming months.

As the rollout of vaccines continues including the newest from Johnson & Johnson, the long-term outlook for the sector should continue to brighten and meet expectations.