Retiree village earns positive note on $30M bonds

VENICE — Fitch Ratings affirmed the BBB+ rating on bonds for the Village On The Isle in Venice, a full-service, nonprofit, faith-based retirement living community.

The outlook on the bonds, $29.3 million in Sarasota County Health Facilities Authority Revenue Bonds, remains positive, according to a report from the ratings agency. That reflects the community's sound operating performance, liquidity growth, strong occupancy levels and solid debt service coverage, Fitch says. The organization, adds Fitch, had a “good cash flow year in 2013, which helped increase unrestricted cash and investments by 19%.”

Even with the good report, Village On The Isle, says Fitch, can still improve its “unrestricted liquidity over the next year, which should bring its metrics more in line with the 'A' medians.” Two factors in its favor, according to Fitch: Occupancy levels across all care levels — independent living, assisted living and skilled nursing — are greater than 97%. The organization, says Fitch, also “has limited competition from other full continuum of care providers and entrance fees that compare well with area housing prices.”

Village On The Isle, says the report, has steadily invested in its facility, and that keeps its campus marketable.