The strong ratings reflect Banner Health’s financially robust profile even as the system has reported weaker financials in the past couple of years, S&P said.
“Operational performance over the past two fiscal years was negatively affected by macroeconomic pressures and industry headwinds around labor and inflation, contributing to compressed margins and reduced, but still sufficient, liquidity and financial flexibility,” the research note said.
Banner Health, which operates a total of 33 hospitals, enjoys good revenue diversity across its 29 acute care locations, its health plan and a growing ambulatory footprint, S&P said, as well as a strong market share in the greater Phoenix area.
The health system’s outlook is stable, reflecting Banner Health’s presence in growth markets as well as a balance sheet offering “sufficient flexibility” to address sustained labor and staffing difficulties.
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