The affirmation was supported by a number of factors, including SPMH’s leading market share and track record of good operating cash flow margins prior to the construction phase of building its new hospital. Additionally, following the opening of SPMH’s new hospital in spring 2014, it is beyond construction risks and has limited spending plans in the coming years.
However, the rating outlook remains negative due to SPMH’s continued thin operating cash flow margin. Failure to improve the operating margin above FY 2013 and FY 2014 levels will likely pressure the rating.
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