Moody's Investors Service has affirmed Seattle Cancer Care Alliance's "A2" revenue bond rating and revised its outlook to positive from stable.
The rating affirmation was based on a number of factors, including SCCA's strong revenue growth, solid balance sheet, maintenance of strong operating margins and good market position.
SCCA's revenue growth is strong, with the three-year compound annual growth rate measuring 11.9 percent in fiscal year 2013. The cancer treatment center has also had an operating margin averaging 6.5 percent over the last five years.
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SCCA also faces some challenges, such as being nearly completely dependent on outpatient services. In addition, the facility's sole focus on cancer lacks the diversification of most rated healthcare providers.
The positive outlook reflects the expectation that SCCA may be upgraded if it stays on its current trajectory and articulates a capital plan that does not weaken debt measures.
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