Fitch Ratings has affirmed the "AA-" rating on Milwaukee-based Froedtert Health's series 2009C and 2012A revenue bonds and affirmed the health system's stable outlook.
The rating affirmation affects roughly $174 million of series 2009C revenue bonds and $154 million of series 2012A revenue bonds issued by the Wisconsin Health and Educational Facilities Authority.
The rating affirmation was supported by a number of factors, including Froedtert Health's improved operating profitability. The health system's financial results in fiscal year 2014 were improved from 2013 partially due to its continued cost management, increased rates and increased outpatient volumes. The system's strong liquidity, solid market position and moderating debt burden were also supporting factors.
If Froedtert Health is able to maintain its strong credit profile, grow liquidity, continue moderating its debt burden and strengthened coverage metrics, the health system may see positive rating movement.