The ratings refer both to the system’s internal default rating and to a series of bonds. The outlook is stable.
The merged entity strengthens what was already a robust Advocate Aurora system, Fitch said.
“AAH’s ‘AA’ IDR considers a very strong financial profile in the context of an already sound market position and geographic reach that is enhanced by the recent combination with Atrium and formation of Advocate Health,” according to the research note.
The combined 67-hospital system, which has annual revenues of about $28 billion, is expected to show further profitability after recording a positive operating margin in the first quarter, Fitch added.
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