Fitch Ratings has affirmed the "AA-" rating on Minneapolis-based Allina Health's series 2009C, 2009 B-1, 2009 B-2, 2009 A-1, 2009 A-2, 2007 C-1, 2007 C-2, 2007A, 1998A and 1985 revenue bonds.
The rating affirmation was supported by a number of factors, including Allina's comprehensive delivery model and geographic reach in the Twin Cities metropolitan area, which is a competitive market. The system's model and location has led to a leading and stable market position of 32.7 percent in 2013.
The rating affirmation was also supported by the health system's low debt burden, manageable capital needs, diverse revenue base and improved liquidity.
Allina also faces some challenges, which were considered for the rating affirmation, including its lower profitability. That said, Fitch believes this challenge is balanced by the system's low leverage position and strong liquidity.