Standard & Poor’s Ratings Services affirmed its ‘A-‘ long term rating on the Lorain County Port Authority, Ohio’s 2013A health care facilities revenue bonds, issued for Kendal at Oberlin, a continuing care retirement community. The outlook is stable.
The rating continues to reflect their view of Kendal at Oberlin’s strong balance sheet and strong management team. Kendal has also been able to maintain positive operations, which is somewhat rare in the senior living industry. The management team continues to move forward with its master facility plan, which has already been funded with proceeds from bonds issued in 2013. While management is updating its facilities, the team is still focused on the future of health care. Kendal at Oberlin is actively aligning with two Accountable Care Organizations and anticipates aligning with a third. This will allow it to stay aligned with the local providers of health care.
The rating further reflects Standard & Poor’s opinion of Kendal at Oberlin’s:
- Solid liquidity, with more than 800 days’ cash on hand as of Dec. 31, 2014;
- Solid business position, reflected by consistently high occupancy; and
- Strong management, supported by an experienced, non-obligated sponsor.
The stable outlook reflects the view of Kendal at Oberlin’s consistent ability to increase its unrestricted reserves amid management’s implementation of its vision for the community of the future. The strategic planning should allow Kendal at Oberlin to continue to build the organization’s liquidity, which will sustain the financial flexibility.
Kendal at Oberlin’s leadership remains very stable. As the team is seasoned, it continues to take steps that it believes will ensure the long-term success of the organization. This can be seen in the continued investment in the long-range master facility plan. As the leadership team has completed three waves of updates to its classic cottages, it continues to make adjustments to the design that are cost efficient and address market needs. This, along with a focus on the expense base, should help Kendal at Oberlin remain successful into the future.
Kendal at Oberlin is predominantly a life care (Type A) community and is an affiliate of The Kendal Corp., which offers affiliated services to Kendal at Oberlin and 11 other affiliates in the U.S. Kendal at Oberlin is located in Oberlin, Ohio, less than one mile from Oberlin College and 35 miles west of Cleveland.