Kendal at Oberlin's S & P Rating Upgraded to 'A'

Kendal at Oberlin recently received an ‘A’ Standard and Poor’s Rating from S&P Global. The life plan community has maintained an ‘A-‘ S&P rating since 2013 and this is its first ‘A’ rating. Kendal at Oberlin is the only Kendal affiliate with an “A” rating and one of about 10 percent continuing care retirement communities to have such a high rating.

“The raised rating reflects our view of Kendal at Oberlin’s consistent operating performance and solid financial profile, including a sound balance sheet, particularly favorable liquidity and financial flexibility,” said S&P Global Ratings credit analyst Wendy Towber. “Kendal’s ability to generate annual operating surpluses that meet or exceed budget is a credit strength in our view as it both reduces the reliance on non-operating income, which can be inconsistent and demonstrates strong business practices of monitoring performance against budgeted goals throughout the year.”

Kendal’s Chief Financial Officer Ann O’Malley said the high grade and stable outlook reflects a community-wide effort.

Financial Stability is an Important Consideration When Choosing a Community

“The strategic vision of Kendal at Oberlin’s Board of Directors and the Kendal System, along with the operational focus and attention of Kendal at Oberlin’s management team, and collaboration with Kendal at Oberlin’s residents has supported the financial strength, liquidity and operational results of the organization.  Together we are transforming the experience of aging,” said Ann O’Malley, Kendal’s Chief Financial Officer.

Other highlights of the rating include:

• Solid liquidity, with approximately 915 days’ cash on hand as of the unaudited fiscal year ended Dec. 31, 2018;
• Solid business position, reflected by consistently high independent living unit occupancy;
• Seasoned management team, supported by an experienced and well-branded, non-obligated sponsor.

Kendal at Oberlin operates 223 independent living units (ILUs), a 12-bed nursing facility, and 67 assisted living spaces on a single site. Kendal at Oberlin is predominantly a life plan (Type A) community and is an affiliate of The Kendal Corp., which offers affiliated services to Kendal at Oberlin and 12 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.