Fitch affirms Denver Health and Hospital Authority's bond rating: 4 things to know

Fitch Ratings has affirmed the at "BBB+" rating assigned to approximately $290 million of Denver Health & Hospital Authority's (Denver Health) series 2007A/B, 2009A, 2010 and 2014A/B bonds.

Here are four things to know about the rating affirmation and Denver Health's outlook.

1. The rating affirmation was supported by a number of factors, including Denver Health's role as an essential healthcare service provider in the Denver metropolitan area.

2. The rating action was also supported by the system's low debt burden and strengthening profitability. The system's profitability has improved primarily due to decreased self-pay resulting from Medicaid expansion under the Patient Protection and Affordable Care Act, according to Fitch.

3. Fitch said positive rating momentum is possible over the medium term "with sustained improvement in profitability and coverage at current levels and further meaningful growth in liquidity."

4. Denver Health's outlook is stable.

 

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