Masonicare’s Debt-rating Upgraded to A- Stable Outlook Amidst Industry Downgrades

(Wallingford, CT) The Wall Street credit rating agency that just over two years ago revised Masonicare’s outlook to BBB+ with a Positive Outlook has now revised Masonicare ratings to an A- Stable Outlook rating, citing continued fiscal stability related to Masonicare’s strategic realignment of services and improved operating margins.

According to Fitch, “The upgrade to 'A-' reflects the positive effects of management's several year implementation of a revised business model, which reduced its exposure to skilled nursing facility (SNF) volatility. Since 2019 (YE Sept. 30), cost management metrics have gradually improved with operating ratios (ORs) in the mid to upper 90% range for fiscal 2023 compared to 106% in 2019. In addition, the balance sheet has grown, with cash to adjusted debt increasing to 117% in fiscal 2023 from 78% (excluding Medicare accelerated funds and deferred social security taxes) in 2020. As a result, the financial profile has improved to a level more consistent with the 'a' category. Fitch expects the financial profile to continue to incrementally improve in its forward-looking scenario analysis as Masonicare continues to focus on improving operating trends.”

Masonicare’s President & CEO Jon-Paul (JP) Venoit credits the continued improvement of the organization to the ongoing strategic adjustments to Masonicare's diversified, state-wide portfolio of services. “The senior care industry remains challenged due to a variety of key contributors including the rising cost of goods and services, a pressured labor market, and reductions in state, federal and managed care reimbursement. The only way to remain sustainable is to implement key strategic initiatives and remain vigilant about that strategy.”

Venoit further credits the Masonicare employee team members and a supportive and forward-thinking Board of Trustees for the organization’s continued momentum. “It is the people behind the plan that have brought us to where we are today. Without a team who can implement, a strategic plan is just an idea. We have a talented team of like-minded leaders who share a common vision and are committed to the organization, our residents and one another.”

Venoit, who joined Masonicare at the age of 16 working in dining services, grew through the ranks and was appointed to President and CEO in 2016 at the height of Masonicare’s fiscal challenges.

“At the time of JP’s appointment, Masonicare’s future looked grim. Dependent on their charity foundation to offset failed operations, Masonicare was poised to close its doors within 7-10 years if the company was unable to right set their financial position,” states Ann Collette, Chief of Strategy for Masonicare. “Through a well-crafted plan, inspiring leadership, and extraordinary teamwork, we implemented a year-over-year plan to address the pain points, while improving the delivery of care and service. As a result, Masonicare is poised for growth and service line expansion.”

In a statement released by Fitch, the agency stated, “Given Masonicare's strong revenue defensibility, improved midrange operating metrics and Fitch's forward-looking scenario analysis, Fitch expects Masonicare's key leverage metrics to improve over the outlook period.”

Masonicare is Connecticut’s largest non-profit senior care continuum, providing statewide care and service to over 4,500 patients and residents. The organization, which is celebrating 129 years of service, provides best-in class residential living communities, a skilled nursing facility, medical and non-medical home health, hospice and palliative care, and an acute care geriatric behavioral health hospital.