Chronicle Journal: Finance

Fitch affirms Covia Communities A- rating

By: via PR Newswire

WALNUT CREEK, Calif., Aug. 13, 2020 /PRNewswire/ -- 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, a non-profit aging services organization based in Walnut Creek, California, 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, another Aging Services non-profit, 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.

Established in 1965, Covia promotes and cultivates healthy communities for positive aging through an innovative continuum that actively supports the whole person. In June, Covia began the process of affiliating with Front Porch, another California-based non-profit aging services organization, to create one of the nation's top not-for-profit organizations providing senior living, affordable housing and community services. To learn more about Covia, visit www.covia.org.

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SOURCE Covia

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