Here are 10 health systems that recently had their outlooks upgraded by Fitch Ratings or Moody’s Investors Service since Jan. 30.
Note: This is not an exhaustive list. Health systems were compiled from credit rating reports.
Boston Children’s Hospital’s outlook was revised to stable from negative by Moody’s. The revision reflects a modest improvement in operating performance and the likelihood that margins will continue to strengthen to roughly 4%-6% in fiscal 2025, Moody’s said. Boston Children’s has an “Aa2” rating with the agency.
Hutchinson (Kan.) Regional Medical Center’s outlook was revised to stable from negative by Moody’s. The revision reflects improving financial performance, with break-even to slightly positive cash flow expected in fiscal 2025, Moody’s said. Hutchinson has a “Baa2” rating with the agency.
Kettering (Ohio) Health’s outlook was upgraded to positive from stable by Moody’s. The revision reflects the likelihood that the system will maintain strong liquidity as it increases capital spending, backed by high single-digit operating cash flow margins, Moody’s said. Kettering has an “A2” rating with the agency.
Mary Washington Healthcare’s outlook was revised to positive from stable by Fitch. The revision reflects Fitch’s view that the Fredericksburg, Va.-based system is well positioned to generate robust cash flow, absorb additional debt and build unrestricted cash and investments. Mary Washington has an “A” rating with the agency.
Miami Jewish Health Systems’ outlook was revised to stable from negative by Fitch. The revision reflects the system’s improved performance over the last two years, which has enabled MJHS to meet its debt service coverage and days cash on hand covenants in fiscal 2024, Fitch said. Miami Jewish has a “BB+” rating with the agency.
Nuvance Health’s outlook was revised to stable from negative by Moody’s. The revision reflects the Danbury, Conn.-based system’s improved financial performance, which Moody’s believes will be sustainable. Nuvance’s expected merger with New Hyde Park, N.Y.-based Northwell Health will provide additional financial resources to expand its market capture, Moody’s said. The system has a “Baa3” rating with the agency.
Rex Healthcare’s outlook was upgraded to positive from stable by Fitch. The revision reflects Fitch’s expectation that the Raleigh, N.C.-based system’s operating performance will continue to improve over the medium term. Rex has an “A+” rating with the agency.
Tampa (Fla.) General Hospital’s outlook was upgraded to positive from stable by Moody’s. The revision reflects the health system’s integration of three new hospitals in 2024 while meeting budget, Moody’s said. Tampa General Hospital has a “Baa1” rating with the agency.
Texas Medical Center’s outlook was revised to positive from stable by Moody’s. The revision reflects the Houston-based system’s continued exceptional operating performance and liquidity relative to operations, Moody’s said. Texas Medical Center has an “A1” rating with the agency.
UC Health’s outlook was upgraded to positive from stable by Moody’s. The revision reflects the Cincinnati-based system’s growing cash flow and liquidity from improvement initiatives, bond proceeds and strong management execution, Moody’s said. UC Health has a “Baa3” rating with the agency.