5 credit rating upgrades for hospitals and the healthcare system

At least five hospital and health system credit rating upgrades have taken place in the past six months.

Baptist Health System (Louisville, Kentucky) – increased in January from “A2” to “A1” (Moody’s Investors Service); raised in January from “A” to “A+” (Fitch Ratings)

“The upgrade to ‘A1’ is driven by the expected sustainability of strong margins and liquidity, which will be supported by revenue growth and diversification strategies as well as demonstrated cost and revenue management discipline. capital expenditures,” Moody’s said.

CommonSpirit Health (Chicago) — upgraded in November 2021 from “BBB+” to “A-” (S&P Global Ratings)

“The rating action reflects the successful execution of several aspects of CommonSpirit’s initial strategies to stem losses and set the system in place for stability, as well as a significantly strengthened balance sheet that provides the organization with some cushion to trades that we believe will be close to breaking even levels in fiscal year 2022,” S&P Global Ratings said.

NYU Langone Health (New York City) – increased in January from “A3” to “A2” (Moody’s Investors Service)

“The upgrade to ‘A2’ reflects the extensive and continued growth initiatives and expense controls that will continue to result in strong margins and strong cash flow that will provide a cushion for the significant capital expenditures expected over the course of coming years,” Moody’s said.

Saint-Pierre University Hospital (New Brunswick, NJ) – increased in April from “Ba1” to “Baa3” (Moody’s Investors Service)

“Upgrading to Baa3 reflects our view that Saint Peter’s University Hospital will maintain significant margin improvement through substantial net benefits (estimated at $26 million per year) under the Expense Pilot Program. County Option hospitalization, additional funding through the state’s charitable care program, and more favorable payor contracts,” Moody’s said.

Temple University Health System (Philadelphia) — increased in December 2021 from “BB+” to “BBB” (Fitch Ratings)

“The two-notch upgrade to ‘BBB’ on Temple’s IDR and revenue bond rating is based on improving profitability over the past two years and, more importantly, increasing significant impact on TUHS’ liquidity measures resulting from the sale of its stake in Health Partners, which raised approximately $300 million,” the rating agency said. “The upgrade to an investment grade rating level is driven by the significantly improved financial profile metrics.”