Increasing market share in a competitive service area and its robust financial strength through a period of labor and inflationary pressure has allowed Milwaukee-based Froedtert Health to continue with an "AA" rating on a series of its bonds, S&P Global said July 27.
The outlook for the 10-hospital system is stable.
Froedtert Health's capital spending plans were described in the research note as "ambitious," with such projects requiring sustained cash flow strength.
"Froedtert's capital spending, which slowed through the COVID-19 pandemic, is expected to increase significantly through 2027, with more than $1.6 billion in anticipated spending on various growth initiatives," S&P said.
The system signed a letter of intent to merge with eight-hospital Neenah, Wis.-based ThedaCare April 11, but the potential financial implications of such a transaction were not included in the S&P note.