The rating is supported by TMH’s “robust liquidity metrics” that are well above “BBB” category medians, according to Fitch. The system’s low debt burden also supports the rating.
TMH does face some challenges, which were considered for the rating affirmation, such as having an unfavorable payer mix. Seventy-three percent of the system’s gross revenues come from government payers.
Fitch also revised TMH’s outlook to stable from positive. The outlook revision was based on a number of factors, including Fitch’s expectation that TMH’s current level of operating performance will continue. The system’s operating EBITDA margin fell to 8 percent in 2014 from 9 percent in 2012, and is budgeted for 7.7 percent for fiscal 2015.
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