Fitch Ratings has assigned an "A-" rating to $127.5 million of series 2014A bonds issued on behalf of Livingston, N.J.-based Barnabas Health.
The rating assignment was supported by a number of factors, including Barnabas' growing liquidity. As of Sept. 30, the system had unrestricted cash and investments of $1.14 billion, or 159.5 days cash on hand.
The rating assignment was also supported by Barnabas' considerable market presence, strong margins and acquisition of the Jersey City (N.J.) Medical Center.
Fitch analysts expect Barnabas Health to use the expected increase in cash flow to continue to grow liquidity and strengthen its balance sheet metrics. Additionally, Fitch predicts the system will have to implement its strong management practices to the Jersey City Medical Center to grow profitability.