Fitch Ratings has assigned an "AA" rating to the expected issuance of $100 million of series 2015A revenue bonds on behalf of Stanford (Calif.) Health Care.
Here are four things to know about the rating assignment and the system's outlook.
1. The rating assignment was based on number of factors, including SHC's robust operating profitability, solid debt service coverage, improving liquidity and strong philanthropic support on their hospital replacement project, according to Fitch.
2. The rating assignment was also supported by the system's close and collaborative relationship with Stanford (Calif.) University and Lucile Packard Children's Hospital in Palo Alto, Calif.
3. Additionally, Fitch viewed SHC's excellent clinical and research reputation and its recent affiliation agreement with Pleasanton, Calif.-based ValleyCare Health System, as positives.
4. The system's outlook is stable.
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