S&P Global Ratings affirmed its "A+" rating on West Orange, N.J.-based RWJBarnabas Health's debt.
The affirmation is a result of several factors, including the health system's strong market position, healthy balance sheet metrics, favorable service demographics and financial diversity. S&P also acknowledged the health system's reliance on disproportionate share and state subsidy funds as well as its highly competitive service area.
The outlook was revised to positive from stable.
"The outlook revision reflects the smooth integration of two sizable healthcare organizations, namely Robert Wood Johnson Health Care and Barnabas Health; and our opinion that this has created opportunities for operational efficiencies and growth based on size, scale, and ability to respond to the inherent challenges in the sector," said Margaret Carr, an S&P Global Ratings credit analyst.