Winston-Salem, N.C.-based Novant Health had ratings affirmed at their current level as the 14-hospital system continues to enjoy robust market share and resilient operating margins even as it faces the typical industry challenges brought on by labor pressures, Fitch Ratings said March 16.
The "AA-" rating refers both to a series of bonds Novant Health holds as well as its default rating.
Novant Health has highly competitive market share in three separate North Carolina markets, Fitch said, including a leading position in Winston-Salem (46.8 percent) and second only to Atrium Health in the Charlotte area.
The rating affirmation also assumes approximately $500 million in capital spending and the costs of acquiring Lake Norman Regional Medical Center and Davis Regional Medical Center from Franklin, Tenn.-based Community Health Systems.
Novant Health had total revenues of approximately $7.6 billion in 2022, Fitch said.