Fitch Ratings has affirmed the ratings on Franklin, Tenn.-based Community Health Systems' bonds, including the "B+" issuer default rating. The ratings apply to $16.8 billion of debt.
The rating affirmation was based on several factors, including CHS' decision to spin off 38 of its hospitals as a new company, which Fitch believes will improve CHS' business profile. The remaining hospitals are more profitable and located in larger markets that Fitch believes have better growth potential.
The rating outlook has been revised to stable from negative.