Fitch Ratings assigned its "AA-" rating to Phoenix-based Banner Health's proposed series 2017A, 2017B, 2017C and 2017D bonds, which will total approximately $452 million.
In addition, Fitch assigned the short-term "F1+" rating to Banner Health's series 2017D bonds and affirmed the "AA-" and "F1+" ratings on Banner Health's outstanding debt.
The assignment and affirmation are a result of several factors, including Banner Health's solid market position, favorable capital spending, sufficient liquidity metrics and adequate debt service coverage. Fitch also acknowledged Banner Health's suppressed operating performance due to losses at the academic medical center and in its insurance division.
The short-term rating is attributed to Banner Health's self-liquidity.
The outlook is stable.