The ratings assignment is based on a number of factors, including the health system’s broad footprint in eight counties throughout eastern New Jersey, and strong statewide market share.
The outlook is positive, reflecting S&P Global Ratings’ expectation that a higher rating may be possible if the health system’s “disciplined execution of its operational, integration and strategic plans generate robust cash flow and subsequent balance sheet accretion to a point where the debt profile is more in line with a higher rating level,” said S&P analyst Cynthia Keller.
The agency also affirmed the “A+” rating on Neptune, N.J-based Meridian Health System’s series 2013A, series 2011 and series 2007 fixed-rate revenue bonds and revised the health system’s outlook to positive from stable.
In addition, S&P affirmed the “A+” rating on Hackensack (N.J.) University Medical Center’s series 2010B, series 2010 and series 2008 bonds and revised the medical center’s outlook to positive from stable.
Meridian Health System and Hackensack University Medical Center merged in July 2016.
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