El Camino Health outlook upgraded, ratings affirmed for bonds

Mountain View, Calif.-based El Camino Health saw various bonds affirmed at "AA-" and its rating outlook upgraded to positive amid expectations of improved liquidity, Fitch Ratings said Feb. 27.

The system, which had approximately $1.4 billion in revenue in fiscal 2022, enjoys a solid market position and a strong operating profile, Fitch said. 

Its manageable capital plans are also helping secure the stronger outlook. El Camino Health, which operates one hospital at two sites in Mountain View and Los Gatos, is expected to spend about $800 million on capital projects over the next five years, mostly related to seismic compliance requirements, Fitch said.

"Fitch believes El Camino has some debt capacity at the current rating to fund capital plans, though there are no imminent plans for debt," the agency said in its report. "Management expects to fund its current capital plan with cash flow."

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