Earlier this month, Fitch Ratings affirmed Brentwood, Tenn.-based LifePoint Hospitals' ratings, including the company's "BB" Issuer Default Rating.
Fitch also affirmed a stable outlook for the for-profit hospital operator. The ratings apply to roughly $2.4 billion of debt as of March 31, according to Fitch. Key rating drivers for LifePoint include pro forma for debt financing activity in the second quarter of 2014. Additionally, debt has trended higher for the company since the end of 2013 because of funding for acquisitions and share repurposes. Fitch expects LifePoint will continue funding these purposes throughout 2014.
Furthermore, liquidity for LifePoint is solid. Although the integration of recently acquired hospitals and higher capital spending will likely pressure the level of free cash flow, Fitch expects it to remain greater than $150 million annually. Furthermore, although patient volumes have been weak at for-profit hospitals nationwide, LifePoint's acquisitions in faster-growing markets will drive growth, according to Fitch.
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