Fitch Ratings has assigned a "BBB" rating to approximately $268.5 million of series 2015 bonds issued on behalf of Hagerstown, Md.-based Meritus Medical Center.
Here are three things to know about the rating assignment.
1. The rating assignment was supported by a number of factors, including Meritus' improved financial performance and position as a dominant provider in its market, according to Fitch. Meritus has maintained a leading market share of 81 percent in its service area.
2. The rating assignment was also supported by Meritus' participation in a regional alliance with Frederick (Md.) MemorialHospital and Western Maryland Hospital System in Cumberland.
3. Meritus also faces some challenges, which were considered for the rating assignment, such as elevated debt burden due to the large debt issued in connection with a replacement facility that opened in 2010.
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