Fitch Ratings assigned an "A" issuer default rating to Roseville, Calif.-based Adventist Health, affecting approximately $930 million of outstanding rated debt.
The assignment is a result of several factors, including the health system's dominant market position across several markets, healthy financial profile, effective cost management strategies and recent growth. Fitch also acknowledged the health system's challenging payer mix, but notes the provider receives state funding that helps mitigate this credit risk.
The outlook was revised to positive from stable, reflecting Fitch's expectation that Adventist Health will maintain its strong operating margins and improve its leverage profile over the next few years.
"Adventist Health's ability to achieve a leading position in acute care in multiple growing markets, coupled with strong cost management and growth over the past several years, has truly been a remarkable journey for us," said Adventist Health CFO Joe Reppert. "[T]his revised outlook from stable to positive is both a confirmation and recognition of a dedicated, disciplined staff that has worked strategically and tirelessly to do the right thing for our communities."