S&P Global Ratings has raised its long-term and underlying ratings on Oakland, Calif.-based Kaiser Permanente's existing debt to "AA-" from "A+."
"The upgrade reflects Kaiser's very strong and improving enterprise profile reflecting strong membership growth over the past two years as well as a pending acquisition in Washington state that will form a new eighth region, and what we consider to be a very favorable integrated health delivery business model," said S&P Global credit analyst Martin Arrick. "The update also reflects a long-term financial profile that has been strong and generally consistent for many years."
The outlook is stable, reflecting S&P Global's view of Kaiser's strong enterprise profile, growing membership and solid operations.