Oakland, Calif.-based Kaiser Permanente, one of the largest nonprofit healthcare systems in the country, had its "AA-" long-term rating affirmed by S&P Global on June 26. The same rating also applies to various debts.
"The rating reflects our view of Kaiser Permanente's healthy enterprise and financial profiles, including extremely strong capital adequacy," S&P Global said.
Kaiser's leadership role in many healthcare areas, including social determinants of health, maintaining affordable healthcare and using technology to lower the cost of care, is part of its strategy leading to the potential formation of Risant Health, the agency said.
And while the system has an imbalanced presence in California compared with the rest of the country, that could improve with Risant Health and the planned acquisition of Danville, Pa.-based Geisinger Health, the note said.
Kaiser Permanente has over $90 billion in revenue, S&P said.