Concurrently, Fitch assigned its “A-” issuer default rating to the health system and the health system’s proposed $667 million series 2018A and $40 million series 2018B.
The downgrade and assignments are based on the additional debt Essentia Health will accrue from its campus replacement project, which will result in elevated leverage metrics.
Fitch positively viewed the health system’s good cost management, leading market share and solid operating margins.
The outlook is stable at the lower rating.
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