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Fitch Rating

Fitch Ratings announces ‘A-‘ Rating for Carolina Meadows The Rating Outlook is Stable

Fitch Ratings announces ‘A-‘ Rating for Carolina Meadows

The Rating Outlook is Stable

Chapel Hill, NC, January 9, 2020 – Fitch Ratings announced that an ‘A-‘ rating has been awarded to Carolina Meadows including an ‘Outlook is Stable’.

The Fitch Ratings announcement stated that the ‘A-‘ rating key drivers include consistently strong independent living (IL) demand, improving financial profile and operating performance with steady revenue and unrestricted liquidity growth and very good cost management, a low debt burden and an IL expansion including longer term capital plans allowing for additional debt capacity, if needed.

Only 36 or so of over 2,000 continuing care (or life plan) retirement communities in the United States have attained as high as an ‘A-‘ rating from Fitch. Carolina Meadows is extremely excited about this major achievement and appreciates the great support and contributions we receive from so many members of our wonderful community. We could not have achieved this important milestone otherwise.

Tad Melton, Managing Director of Ziegler Capital Market’s Senior Living Finance Group, stated “Carolina Meadows is a premier life plan community, located in Chapel Hill, North Carolina.  As evidenced by its A- rating from Fitch Investors Service, Carolina Meadows possesses a first-rate campus and suite of resident services, strong governance and management and an extremely strong financial position. This places Carolina Meadows within a small group of high-performing and well-regarded communities.”

Fitch’s awarding this ‘A-‘ investment grade rating to Carolina Meadows followed an intensive campus meeting with Fitch representatives that included a presentation from our CEO, CFO and VP of Marketing, management interviews, informative discussion and a tour of our campus including visits to villa and apartment homes.   Our discussion touched on our excellent and improved financial results, our unique contract type in terms of both its attractiveness to residents through the return of equity and the related need for prudent resource management.  We also discussed the strong desire to be a part of the Carolina Meadows community as evidenced by our deep ready and wait lists which exceed 600 members, the complete presale of all 40 hybrid homes on our Birchtree IL expansion now under construction and over 100 members of our Early Advantage program.


 

Fitch Ratings Press Release on Carolina Meadows

Fitch Ratings, originally founded in 1914, is a leading global rating agency committed to providing the world’s credit markets with credit opinions.  Dual headquartered in New York and London, Fitch operates across the globe, providing insurer financial strength ratings for companies in multiple industries.  Fitch Ratings was one of the three ratings agencies first recognized as a nationally recognized rating organization (NRSRO) by the Securities and Exchange Commission in 1975.

Carolina Meadows, Inc. is a nonprofit North Carolina corporation qualified as a tax-exempt organization under IRS Code Section 501(c)(3). We provide housing, health care and other related services to our residents through the operation of a life plan community currently consisting of 287 villas, 156 apartments, 78 assisted living apartments and a 90-bed health center located in Chatham County, North Carolina.

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