The rating upgrade was based on a number of factors, including the hospital’s improved financial performance through the year-to-date period of fiscal year 2015, light leverage and limited capital needs.
“We think it is unlikely that we would raise the rating further within the two-year outlook period,” said Margaret McNamara, an S&P analyst. “We, however, could raise the rating over a longer period if management were to develop and clarify its long-term strategic plans, including potential partnerships, or if the financial profile were to improve, including sustaining margins of more than 3 percent and materially growing key balance sheet metrics to levels we consider consistent with ‘A’ medians.”
The hospital’s outlook is stable.
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