Fitch Ratings affirmed its "BB" rating on Seguin, Texas-based Guadalupe Regional Medical Center's series 2015, affecting $113.6 million in debt.
Concurrently, Fitch assigned its "BB" issuer default rating to the medical center.
The affirmation and assignment are based on several factors, including the medical center's stable payer mix, growing service area and strong core hospital profitability. Fitch unfavorably viewed the medical center's weak liquidity and cost pressures associated with the medical center's plans to recruit physicians in a tight labor market.
The outlook is stable.