On July 31, Fitch Ratings announced that Covia once again has been given an A- rating with a stable outlook. Covia first received an A- rating in 2017.
Covia benefits from its diverse operating profile, high occupancy rate, and favorable debt position. According to Fitch’s report, “Along with a sophisticated and centralized management structure, the community’s revenue diversity offsets credit risks relating to operating volatility, competitive pressures and actuarial risk.”
The report also states, “The Stable Rating Outlook reflects Fitch’s expectation that operations will improve over the next year and maintain profitability levels that are in line with Fitch’s ‘A’ category medians.”
“We are on target when it comes to taking care of our residents and employees by having a solid, financially sound organization,” says Mitzi Hyland, Covia’s VP of Finance and Corporate Controller. “Being investment grade says it all about our leadership and staff.”
Covia’s President and CEO Kevin Gerber praised “the entire Covia team for this great outcome in these extraordinary times.”
As well as evaluating Covia’s current financial situation, Fitch took into account Covia’s intention to affiliate with Front Porch, which is rated A by Fitch. “Although the recent announcement of Covia’s affiliation with Front Porch Communities and Services is still pending regulatory approval, if approved, Fitch views the strategic move could further diversify Covia’s revenue base and market reach.”
Fitch Ratings is an international credit rating agency, used as a guide to help lenders and investors evaluate which investments will not default and subsequently yield a solid return. Fitch is one of the top three credit rating agencies internationally, along with Moody’s and Standard & Poor’s.