S&P assigns ‘AA-‘ rating to Banner Health’s bonds

S&P Global Ratings has assigned an “AA-” long-term rating to Phoenix-based Banner Health’s $776.1 million of series 2016A fixed rate revenue bonds.

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“The rating reflects our view of Banner Health’s very strong enterprise profile, with good revenue diversity across 28 acute care hospitals located in seven Western states,” said S&P analyst Kevin Holloran.

The outlook is stable, reflecting S&P’s expectation that Banner’s operating margins and balance sheet metrics will be temporarily diluted by recent acquisitions, but will steadily improve in the next one or two years.

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