Parkland Bonds On Sale With AAA Rating

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    NEWSLETTERS

    TK
    Parkland Memorial Hospital is the county hospital for Dallas.

    Most things labeled “historic” are great, but not so much when the term is used in reference to a hospital.

    Modern facilities are becoming increasingly necessary to deliver the best care possible, and Dallas voters approved a new Parkland Hospital in November.

    Bonds went on sale Monday morning to build the new hospital so that people do not have to get surgery in the same place where JFK was taken when he was shot in 1963.

    The $705 million in hospital bonds received a AAA-rating from both Fitch Ratings and Standard & Poor's Rating Service -- the only hospital to receive such a high rating in the country, public or private.

    “These ratings were due in large part to the credit strength of Dallas County's and reinforced by Parkland's good operating performance, the support of the County Commissioners and especially the support of the Dallas County voters," said John Dragovits, Executive Vice President and Chief Financial Officer.

    Agencies cited as reasons for the stellar rating the strength and diversity of the Dallas economy, its substantial tax base, and Parkland’s lack of debt, positive operating margins, liquidity and cash flow.

    Parkland plans to issue a majority of Build America Bonds, which are part of a federal program that provides a 35 percent subsidy to public entities.

    "Our fiscal prudence brings real value to the taxpayers. We anticipate that this prime credit rating and the cost savings of the Build American Bonds together will save about $60 to $80 million," Dragovits said. "Together, these will help us achieve our goal for some of the lowest interest costs."

    Holly LaFon has written and worked for various local publications including D Magazine and Examiner.