Concurrently, Fitch assigned its “AA-” issuer default rating to Kaiser.
The upgrade and assignment are a result of several factors, including Kaiser’s broad market reach in numerous states, dominant market share in California and sound profitability. Fitch also acknowledged the health system’s upcoming period of elevated capital spending.
The outlook is stable, reflecting Fitch’s expectation that Kaiser will sustain its operating margin to offset the period of high capital spending.
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