Fitch Ratings affirmed its "AA" long-term rating on the outstanding bonds of Houston-based Texas Children's Hospital, affecting about $666 million of debt.
Concurrently, Fitch assigned its "AA" issuer default rating to the hospital.
The affirmation and assignment are based on several factors, including the hospital's leading market position, strong cash flow and limited capital needs. Fitch also acknowledged Texas Children's historically strong operating margin, which the agency expects will improve as the hospital wraps up key expansion projects.
The outlook is stable.