Fitch also revised OCF’s outlook to positive from stable.
Here are three things to know about the rating assignment and outlook revision.
1. The rating assignment was supported by a number of factors, including OCF’s liquidity growth and the fact that OCF’s strategy to grow as a regional referral center is gaining traction. Referrals have increased every quarter since the first quarter of 2014, according to Fitch.
2. OCF is borrowing approximately $250 million in taxable debt to fund a variety of projects that will provide additional capacity to meet the increasing demand for services. However, Fitch said, a pro forma analysis of the debt shows the debt burden remaining relatively manageable.
3. The positive outlook reflects OCF’s improving financial profile. Audited 2014 results show a 1.8 percent operating margin, the strongest over the four-year historical period.
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