Fitch Upgrades Kimball Farms Rating to ‘A+’
Fitch Ratings has upgraded the revenue bond rating for Berkshire Retirement Community (dba Kimball Farms Continuing Life Care Community (CLCC)) from ‘A’ to ‘A+’ with a stable outlook. Fitch is an international credit rating agency based out of New York City and London. Investors use the company’s ratings as a guide as to which investments will not default and subsequently yield a solid return. Along with Moody’s and Standard & Poor’s (S&P’s), Fitch is one of the top three credit rating agencies in the world.
The bonds are secured by a pledge of gross revenues, a first mortgage lien on certain property and equipment and a debt service reserve fund.
The upgrade to ‘A+’ reflects Kimball Farms’ continued liquidity growth and debt moderation, all of which compare favorably to Fitch’s “A” category medians.
Bill Jones, President of Berkshire Healthcare Systems, commented “We are thrilled that Kimball Farms CLCC has received this improved rating from Fitch and are proud of our staff and leadership who have established a consistent track record of excellence in everything they do. He added, “This reinforces Berkshire Healthcare’s commitment to providing a broad range of quality senior living care options in our community.
Kimball Farms’ location in Lenox, MA of the Berkshires, is a destination community for New York and Massachusetts residents, which allows it to access a wider pool of prospective residents. Additionally, Kimball Farms’ entrance fee prices are commensurate with the local real estate market. Competition in the service area is limited.
Driven by Kimball Farms’ favorable location, quality reputation, and limited competition, demand in all levels of care has been strong. Occupancy has historically been robust as independent living unit (ILU), assisted living unit (ALU) and skilled nursing facility (SNF) averaged 93%, 94% and 96%, respectively, from 2014 to 2018.
Kimball Farms is a Type-A (life care) life plan community (LPC) located on two campuses in Lenox, MA. The Kimball Farms at Walker Street campus includes 150 ILUs, 48 ALUs, and 26 memory care units. The Kimball Farms Nursing Care Center at Sunset Avenue includes a 74 bed Skilled Nursing Facility with a dedicated memory care unit. The campuses are located approximately one mile apart, and transportation is provided to residents and family members.
The detailed rating report can be found at www.fitchratings.com.