Here are nine health systems that have had their credit ratings upgraded so far in 2023 by Fitch Ratings, Moody's or S&P Global, with the most recent upgrades first.
1. Charlotte, N.C.-based Atrium Health has seen its rating on various series of debt upgraded to "AA" from "AA-," S&P Global said May 22. The move reflects the credit strength of the consolidated Advocate Health, formed from the affiliation between Atrium Health and Downers Grove, Ill.- and Milwaukee-based Advocate Aurora Health effective in December, the ratings agency said.
2. Ashland, Ky.-based King's Daughters Medical Center received an upgrade to "A," Fitch said May 3, both for its default rating and on some specific bonds. The system, which operates two hospitals as well as seven urgent care centers, enjoys a sustainably strong financial profile, Fitch said.
3. Sutter Health, a 27-hospital system based in Sacramento, Calif., saw various ratings upgraded to "A+" after two straight years of positive operating income, Fitch said April 24. The outlook is stable for the system, which reported $278 million in operating income in its fiscal 2022.
4. Long Island Community Hospital's rating was upgraded from "A-" to "A" by S&P March 31. The rating agency said that the Patchogue, N.Y.-based affiliate of the NYU Langone system will benefit from its parent company's $100 million capital commitment.
5. El Camino Health's revenue bond rating was raised from "A1" to "Aa3" by Moody's March 8. The rating agency said the Mountain View, Calif.-based system's upgrade reflects strong clinical offerings, favorable revenue growth and strong physician relationships, the agency said. The outlook at the new grade was revised to stable from positive. Fitch also upgraded the health system's outlook from from stable to positive.
6. NYC Health + Hospitals's credit rating was raised from "A+" to "AA-" by Fitch Feb. 21. The New York City system is the largest municipal health system in the country, serving more than 1 million New Yorkers annually in more than 70 patient locations across the city, including 11 hospitals, and employs more than 43,000 people.
7.Cooper University Health Care's rating was raised from "Baa1" to "A3" by Moody's. The rating agency said it expects the Camden, N.J.-based system's operating margins will be maintained through execution of its performance improvement plan and strong growth in key service lines. The system was also upgraded late last year from "BBB+" to "A-" by S&P.
8. Mercyhealth's credit rating was upgraded from "A-" to "A" by Fitch Feb. 14. The rating agency said the Rockford, Ill.-based system's operating profile is expected to remain strong in the longer term.
9. Orlando (Fla.) Health's rating was upgraded to "AA-" from "A+" by Fitch Jan. 18. The ratings agency said in a report the bump "reflects the continued strength of OHI's operating performance, growth in unrestricted liquidity and excellent market position in a demographically favorable market."