The affirmation is a result of several factors, including LRH’s favorable operating performance in consecutive years, healthy unrestricted reserves, strong debt coverage and stable utilization trends. S&P also acknowledged LRH’s modest market position in a limited primary service area and its small number of medical personnel.
S&P revised the outlook to positive from stable.
“The positive outlook reflects LRH’s trend of positive operations that, when coupled with stable non-operating income, have supported solid maximum annual debt service coverage that is consistent with a higher rating, combined with incremental debt reductions and sound balance-sheet metrics,” said Chloe Pickett, an S&P Global Ratings credit analyst.
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