Chattanooga, Tenn.-based Erlanger Health System’s credit rating was upgraded to “A” from “A-” by Fitch.
The upgrade reflects the system’s sustained operating improvement, strong liquidity and a market share nearly twice that of its closest competitor, Fitch said in its Feb. 4 report.
Fitch said that it views Erlanger’s ability to maintain appropriate margins and cash flow while addressing headwinds as a key driver of the upgrade.
“Fitch believes the current stronger operating platform will be maintained, despite persistent sector headwinds, as the system invests in services and ambulatory expansions while generally improving liquidity levels,” the report said.
Erlanger has a stable outlook at its new rating.
