The rating affirmation is supported by a number of factors, including a guaranty from the Sisters of Charity Health System Obligated group and SCPH’s focus on cardiac and orthopedic services.
SCPH also faces some challenges, which were considered for the rating affirmation, such as operating in a competitive service area.
Fitch said it expects SCPH to continue meeting its financial covenant requirements and for SCPH and Sisters of Charity Health System Obligated Group “to continue producing robust combined liquidity metrics exceeding ‘A’ category medians.” However, the inability to meet financial covenant requirements based on SCPH’s underlying operations would likely lead to negative rating action, according to Fitch.
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