Fitch Ratings has affirmed the 'BBB+' rating assigned to New Lenox, Ill.-based Silver Cross Hospital and Medical Center's series 2009, 2005A and 2005C revenue bonds and series 2008A and 1999 revenue refunding bonds.
The rating affirmation was supported by a number of factors, including Silver Cross' consistently strong operating cash flow. The system's operating EBITDA margin in fiscal year 2013 was a solid 14 percent.
The rating affirmation was also supported by Silver Cross' strategic partnerships. Silver Cross signed an affiliation agreement with Oak Brook, Ill.-based Advocate Healthcare to participate with Advocate Physician Partners in their clinical integration program, which was viewed favorably by Fitch.
Silver Cross also faces some challenges, which were considered for the rating affirmation, such as having a high debt burden.
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