S&P Global Ratings upgraded its issuer default rating on Redlands (Calif.) Community Hospital to "BBB+" from "BBB."
In addition, S&P upgraded the rating on RCH's series 2016 revenue bonds to "BBB+" from "BBB."
The upgrade is a result of several factors, including RCH's healthy cash flow, strong operating profitability, strong debt service coverage and improved balance sheet metrics.
S&P also acknowledged the hospital's fragmented and highly competitive primary service area.
The outlook is positive, reflecting RCH's strengthening financial profile and solid debt service coverage.