Fitch Ratings has upgraded the rating on $51.2 million of series 2009A revenue bonds issued on behalf of Clermont, Fla.-based South Lake Hospital to "A-" from "BBB+."
Here are four things to know about the rating upgrade and the hospital's outlook.
1. The rating upgrade was supported by a number of factors, including SLH's strengthened performance in fiscal 2014 resulting in another year of sound operating profitability, according to Fitch. In fiscal 2014, SLH earned $16.6 million in operating income, which more than doubled the prior year's $7.4 million gain.
2. The rating upgrade was also supported by the hospital's leading market position, manageable debt burden, absorbable capital plans and close relationship with Orlando (Fla.) Health, which owns 50 percent of SLH.
3. Fitch said it expects SLH's operating cash flow to remain consistent, "resulting in sound debt service coverage metrics and continued unrestricted liquidity growth."
4. The hospital's outlook is stable.