Fitch Ratings has affirmed the "AA-/F1+" ratings on the outstanding debt of Memorial Health Services known as MemorialCare Health System, a six-hospital network based in Fountain Valley, Calif.
The affirmation of the "AA-" rating was supported by a number of factors, including MemorialCare's solid overall financial profile, conservative budgeting and financial planning, and growth and integration efforts. MemorialCare has grown its system through strategic physician acquisitions and affiliations and also acquired a health plan license and started operating Seaside Health Plan in September 2013, according to Fitch.
Fitch said it believes MemorialCare has cushion at its current rating level as it continues to invest in its strategic initiatives, which has been partially afforded by the benefit from the hospital provider fee.
The affirmation of the "F1+" rating is based on MemorialCare's self-liquidity.
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