Moody's Investors Service has upgraded the rating assigned to Burlington, Vt.-based Fletcher Allen Health Care's bonds to "A3" from "Baa1."
The rating upgrade was supported by a number of factors, including Fletcher Allen's significant growth over the last three years, good operating performance, improved debt service coverage and improved liquidity.
Through affiliations with regional hospitals, Fletcher Allen has grown over the last three years. The hospital now generates approximately $1.6 billion of revenue, up from $950 million in fiscal year 2011.
In addition, Fletcher Allen's operating cash flow has risen to over $160 million in fiscal year 2014, compared to $97 million in 2011.
Fletcher Allen has a stable outlook at the higher rating level, which reflects the expectation that the hospital will continue to generate strong operating margins and be prudent in future capital spending.
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