Fitch upgrades Kaiser Permanente’s bond rating to ‘AA-‘

Fitch Ratings upgraded Oakland, Calif.-based Kaiser Permanente’s revenue bond rating to “AA-” from “A+,” affecting approximately $10 billion of outstanding debt.

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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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