Fitch Ratings assigned its "A-" rating to $3.08 million series 2017B and series 2017C revenue bonds issued by the Wisconsin Health and Educational Facilities Authority on behalf of Marshfield (Wis.) Clinic Health System.
Additionally, Fitch affirmed the "A-" rating on Marshfield Clinic's series 2016A and 2016B revenue bonds, affecting approximately $206.7 million of outstanding debt.
The assignment and affirmation are a result of a couple factors, including the health system's strong business model and Fitch's expectation that the health system will see improvements in cash flow and operating margins with execution of a strategy that involves adding acute care facilities in key markets. Fitch also acknowledged the risks associated with MCHS' upcoming capital spend and increased pro forma outstanding debt.
The outlook is stable.