Here are eight health systems that have had their credit ratings upgraded by Fitch Ratings or Moody's Investor Services in 2024:
1. Akron (Ohio) Children's Hospital was upgraded to "Aa3" from "A1" by Moody's. The rating agency said the upgrade reflects expected maintenance of strong operating performance and liquidity, driven by new growth initiatives.
2. CommonSpirit Health was upgraded to "A3" from "Baa1" by Moody's. The Chicago-based system has achieved many of the operational and organizational integration goals it established upon formation, Moody's said.
3. El Camino Health was upgraded to "AA" from "AA-" by Fitch. The upgrade reflects the Mountain View, Calif.-based system's strong operating profile assessment with a history of generating double-digit operating EBITDA margins anchored by a service area that features strong demographics as well as a healthy payer mix.
4. Irving (Texas) Hospital Authority was upgraded to "Baa1" from "Baa2" by Moody's. The upgrade reflects solid and growing contingent rent payments from tenant Baylor Scott & White Medical Center-Irving due to substantial increases in volumes and insured patients following the renovation of the main campus, Moody's said.
5. Martin County Hospital District, which owns and operates an 18-bed critical access hospital in Stanton, Texas, had its rating upgraded to "A-" from "BBB+" by Fitch. The upgrade reflects its status as the sole community provider in the county and strong cash flow generation that led to significant growth in unrestricted liquidity over the past few years, Fitch said.
6. NYU Langone Health was upgraded to "A1" from "A2" by Moody's. The New York City-based system's upgrade reflects expected continuation of strong and consistent operating performance and revenue growth relative to peers, driven by its strong market position and highly effective and disciplined leadership, the ratings agency said.
7. Prime Healthcare was upgraded to "BBB+" from "BBB" by Fitch. The Ontario, Calif.-based health system's upgrade is based on material improvement in 2023 operating results as well as solid liquidity and moderate leverage.
8. Saint Luke's Health System was upgraded to "Aa2" from "A1" by Moody's. The Kansas City, Mo.-based system's rating was upgraded after its merger with St. Louis-based BJC HealthCare was completed in January.