The affirmation is a result of several factors, including the health system’s strong market position, healthy patient volume and robust balance sheet metrics. S&P also acknowledged the health system’s weaker than expected operating results in fiscal year 2017.
The outlook was revised to negative from stable.
“The negative outlook reflects our view that Asante’s upcoming capital plans, which include significant spending and new debt over the next few years, could result in pro forma balance sheet metrics and debt service coverage that are no longer appropriate for the current rating,” said Allison Bretz, an S&P credit analyst.
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