Fitch Ratings assigned its "BBB+" issuer default rating to Toledo, Ohio-based ProMedica. Concurrently, Fitch assigned its "BBB+" long term rating to ProMedica's $300 million series 2018A bonds and $1.15 billion series 2018B taxable bonds.
The long-term rating assignments are based on several factors, including ProMedica's strong inpatient market share, improving operating margins and favorable payer mix.
Fitch also acknowledged the health system's recent acquisition of HCR ManorCare, a national post-acute, home health provider. The credit rating agency said this acquisition will expand ProMedica's overall consumer footprint. In addition, although the transaction weakened ProMedica's balance sheet, Fitch expects the metrics to return to historical levels.
The outlook is stable.