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.
While the newly formed merged system is expected to report consolidated financials over time, the two systems currently choose to report such results separately.
Both systems reported operational losses in 2022 but are expected to return to positive outcomes in fiscal 2023 while the combined entity has "solid balance sheet metrics" with "only moderate debt levels," the research note said.
The combined system, serving a population of over 16 million, operates 67 inpatient facilities in Illinois, Wisconsin, North Carolina and Georgia.