Fitch Ratings has affirmed the "A-" rating on $153.33 million of series 2009A bonds issued on behalf of Williamsport, Pa.-based Susquehanna Health System.
Here are three things to know about the rating action and SHS' outlook.
1. The rating affirmation is supported by a number of factors, including the health system's dominant market share and rebounding profitability. SHS' operating performance, which initially suffered after Wellsboro, Pa.-based Laurel Health System joined SHS, is showing improvement starting with the current fiscal year, according to Fitch. SHS' operating margin, which was in the low 1 percent range in the last two years, is reported at 2.7 percent through the nine month interim period ended March 31, 2015.
2. The rating affirmation was also supported by the completion of a major construction project. SHS has completed its extensive, multi-phase $263 million project including a new patient tower in Williamsport. Fitch said the recently issued $40 million Barclays Bank private placement loan will fund several remaining projects of the health system's master facility plan without negatively impacting liquidity.
3. The health system's outlook is stable.