Fitch Ratings has assigned an “A-“ issuer default rating (IDR) to the Miriam Osborn Memorial Home Association (The Osborn) and has affirmed its “A-“ revenue rating on revenue bonds issued on The Osborn’s behalf. The IDR rating indicates the high credit quality maintained by the organization, a non-profit continuum of care retirement community in Rye, NY. Fitch also revised The Osborn’s rating outlook from “Stable” to “Positive,” reflecting expected growth as healthcare census recovers to pre-pandemic levels.
“We are very proud of sustaining this excellent rating, especially in light of the current challenging economic times brought on by the COVID-19 pandemic,” said Matthew Anderson, President and CEO of The Osborn. “Throughout our 113-year history, we have been committed to providing an active, safe, and engaged lifestyle for our residents today while maintaining our financial stability for a successful future.”
Fitch is a leading provider of credit ratings, commentary, and research with clients throughout the world. According to Fitch, “The A-rating reflects the strength of [The Osborn’s] financial profile . . . .” Fitch’s rating action commentary went on to say, “Despite the challenges in marketing and sales brought on by the coronavirus pandemic, [The Osborn] was able to maintain average [independent living unit] occupancy of 90% in 2020.”
Further, in its previous rating action commentary, Fitch outlined that, “The Osborn has developed a very strong reputation, owing largely to its high quality services and amenities, which Fitch expects should continue to support a strong demand profile.” It was noted that the local market continues to display favorable wealth indicators, a growing population in the 65+ age group, and strong real estate values.