Fitch affirms ‘BBB-‘ rating on Oaklawn Hospital, assigns positive outlook

Fitch Ratings affirmed its “BBB-” rating on Marshall, Mich.-based Oaklawn Hospital’s $63.5 million series 2016 revenue bonds. Concurrently, Fitch assigned the hospital an issuer default rating of “BBB.”

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The affirmation and assignment are based on several factors, including the hospital’s leading local market position, adequate financial profile and expected margin improvement in fiscal year 2019. The hospital has a modestly elevate leverage position, Fitch said.

The outlook was revised to positive from stable, reflecting Fitch’s expectation that the hospital will see a stronger operating performance in 2019, which will help improve its leverage position.

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