Corporate News and Events

Trinity Health Earns Ratings Upgrade from Moody’s and Fitch;
Positive Outlook from Standard & Poors

Novi, Michigan (Nov. 7, 2006) – Trinity Health received credit rating upgrades from Moody’s and Fitch and a positive outlook from Standard & Poor’s investor services. The higher ratings will save the health system millions of dollars in interest in future years. In separate announcements:

• Moody’s upgraded Trinity Health’s bond rating to Aa2 from Aa3;
• Fitch upgraded its rating to ‘AA’ from ‘AA-‘; and
• Standard & Poor’s assigned its ‘AA-‘ rating and revised its rating outlook to positive from stable.

The ratings upgrade comes at a good time for Trinity Health.  More than $668 million of additional new major construction is planned over the next several years. 

“This credit rating increase is a confirmation of our work to leverage the skill and scale of our entire hospital network toward cost savings and quality improvements,” said Joe Swedish, President and CEO, Trinity Health.  “By stewarding our resources, we have been able to enhance patient safety and quality care delivery, increase our support for the poor and uninsured, and continue as a major contributor of jobs and economic stability to the regions we serve.  All of these efforts tie into our mission to improve the health of our communities.”

According to Fitch, the credit rating upgrade “reflects consistently solid financial operations, above average economic growth and healthy revenue and debt profiles.”  Moody’s cited Trinity Health’s geographic diversification across seven states, and its stronger pension plan funding, as strengths that contributed to its ratings upgrade.  S&P credited Trinity Health’s management team for strengthening the organization through the pursuit of a more disciplined financial strategy.

“A strong balance sheet gives us the financial strength and the stability to be more responsive to major changes in a constantly evolving industry,” said Edward Chadwick, Chief Financial Officer, Trinity Health. “The positive ratings opinions are indicators of the success of our strategy to operate as a large, integrated and unified health system focused on leveraging ourselves toward greater productivity and care redesign.”

With hospitals in seven states, Trinity Health is the fourth-largest Catholic health care system in the nation. Based in Novi, Mich., the system owns or operates 44 hospitals, 384 outpatient facilities, numerous long-term care facilities, and home health offices and hospice programs. Employing approximately 45,100 full-time staff, Trinity Health has total revenues of $6.1 billion and reported $307 million in community benefit ministry in fiscal year 2006. For more information about Trinity Health, visit www.trinity-health.org.