Fitch Ratings has upgraded the rating on $146.5 million of Pensacola, Fla.-based Baptist Health Care's series 2010A revenue bonds to "A-" from "BBB+," and revised the system's outlook to stable from positive.
The rating upgrade was supported by a number of factors, including the system's improved liquidity position. As of Dec. 31, 2014, Baptist Health Care had cash and investments totaling $263.8 million or 141.3 days cash on hand.
The system's leading market position also supported the rating action. Baptist Health Care has increased its market share and has been the leader its market for two consecutive years.
The system also faces some challenges, which were considered for the rating action, such as incurring $110 million in additional debt over the next three years to fund capital projects.
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