Miami-based Nicklaus Children's Hospital's credit rating was upgraded to "AA-" from A+ by Fitch.
Fitch said the rating is based on Nicklaus Children's strong operating results over the past four years, according to a May 2 news release. The ratings agency attributed those results to factors including additional revenues from the adoption of Florida's Medicaid Direct Payment Program, a growing physician network, good volume trends and the implementation of a margin improvement initiative that began in 2022.
The rating is also supported by its position as the "premier pediatric hospital in South Florida with a leading and growing market share." The health system is also planning on opening a major inpatient surgery tower in the third quarter of 2024, which is projected to increase surgical volume and margin contribution.
Nicklaus Children's has a stable outlook with Fitch.