The rating agency also assigned an “AA-” rating to $554.28 million of series 2015 taxable bonds issued on behalf of the system.
“The rating action reflects our view of the BSWH merger last year, which we believe created significant opportunities for cost synergies based on increased size and scale and clearly augments the organization’s ability to respond to future challenges in the healthcare sector,” said Kevin Holloran, an S&P credit analyst.
The rating upgrade and assignment were also based on the system’s significant geographic spread throughout central and north Texas, its good operational liquidity and solid financial operations.
The system’s outlook is stable, which reflects S&P’s expectation “of continued positive operating results given BSWH’s strong and expanding business position in the growting central and north Texas service areas.”
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