PROVIDENCE – Fitch Ratings Ltd. has placed a negative ratings watch on about $3.9 million in 1996 bonds issued on behalf of the Tockwotton Home, citing the facility’s rebuilding plans. But it maintained its “BBB” rating on the series 1996 bonds, which were issued by the R.I. Health and Educational Building Corporation on Tockwotton’s behalf.
In its ratings action yesterday, Fitch cited the long-term care facility’s “pending issuance of approximately $40 million to build a replacement facility,” saying that “Fitch believes the pending new debt issuance may result in Tockwotton’s ‘BBB’ rating to be lowered.”
The ratings agency said it expects the new bonds “to be issued by the calendar year-end,” but added that delays are possible, “given recent market events.”
Tockwotton Home, which posted revenue of $4.5 million for fiscal 2007, has 24 assisted-living units and 42 skilled-nursing beds. It “covenants to provide bondholders with annual audited and quarterly financial statements,” Fitch said.
The East Side facility also is a partner with three regional research and development groups in a Nursing Home of the Future initiative that aims to reshape assisted-living and nursing home facilities and care. (READ MORE)
Tockwotton has received a perfect score on the R.I. Department of Health’s performance survey in eight of the past 10 years, and was one of 11 facilities to achieve perfect scores last year on the department’s new consumer survey tool. (READ MORE)
Tockwotton Home, founded in 1856, is a nonprofit nursing home and assisted living center. Additional information is available at www.tockwotton.org.
Fitch Ratings Ltd. is an international credit-rating agency with headquarters in New York City and London. Additional information is available at www.fitchratings.com.
