Fitch Ratings assigned an ‘A-‘ rating to bonds to be issued by the North Carolina Medical Care Commission on behalf of The Presbyterian Homes Obligated Group. The Obligated Group includes The Presbyterian Homes, Inc. (PHI), The Presbyterian Homes Foundation, Inc. and Glenaire, Inc., which is an affiliate of PHI.
In its report, Fitch stated that key drivers associated with the rating were “ . . . strong occupancy trends, economies of scale from running three retirement communities and pricing flexibility . . . .” The report also cited operating performance, long operating history, favorable locations, attractive service offerings, strong demand, and healthy profitability levels as factors contributing to the ‘A-‘ rating.
“We are very pleased with this news and what this rating will mean for The Presbyterian Homes from a cost-savings standpoint. Working together as an obligated group enables us to streamline and create an efficient borrowing situation for the organization,” said Tim Webster, President of The Presbyterian Homes, Inc.
In addition to a long tenured and very experienced senior executive team, Fitch noted that staff members have successfully guided the organization through various strategic initiatives and expansion projects involving new partnerships. PHI Management Services, LLC (owned by PHI) was formed earlier this year and is now providing marketing and management services for Greensboro-based Friends Homes, Inc. PHI is also a participant in a joint venture, Capital Towers, III, LLC, to redevelop a senior affordable housing project in Raleigh, NC. “We view these new partnerships as a way to expand our mission of supporting the well-being of senior adults. Staff members in each of our communities work diligently to enhance programing and wellness services provided for residents. It is important to us that residents are receiving high quality services and that they feel good about their communities,” said Webster.
Fitch noted that PHI has a strong demand trend in its three NC locations and has enjoyed strong occupancy levels. Kevin Tilley, chairman of The Board of Governors for The Presbyterian Homes, Inc. provided his perspective by saying, “The Board has always focused on providing the residents with a high quality and secure lifestyle and this rating from Fitch is further evidence that we are being successful.”
The report from Fitch Ratings can be reviewed in its entirety at www.fitchratings.com.
The Presbyterian Homes, Inc. has more than 60 years’ experience as a leader in the senior living field. Its mission is to provide senior adults with caring and high quality services in support of their physical, intellectual, social, and spiritual well-being. The Presbyterian Homes, Inc. is a non-profit corporation serving approximately 2,000 seniors through three owned and two managed continuing care retirement communities and an affordable rental apartment campus located in North Carolina. It is affiliated with the Presbyterian Church (USA) through a covenant agreement.