S&P Global Ratings assigned its "BBB" rating to Seattle-based Virginia Mason Medical Center's series 2017 revenue bonds issued by the Washington Health Care Facilities Authority. The series 2017 bonds will refund series 2007A-C and 1997B for present value savings.
S&P affirmed the "BBB" rating on Virginia Mason Medical Center's series 2007A-C and 1997B bonds, but the ratings will be removed after the sale of the series 2017 bonds.
Additionally, S&P affirmed the "BBB" rating on VMMC's series 2013 taxable bonds.
"The rating reflects our opinion of Virginia Mason's strong enterprise profile characterized by widely regarded tertiary capacity and lean management operating philosophy, a large employed physician group and an excellent regional patient draw," Martin Arrick, an S&P Global Ratings credit analyst, said.
The affirmations are based on S&P's prediction that the medical center will see improvements in cash flow and stable balance sheet metrics.
The outlook is stable, reflecting S&P's expectation that VMMC will be able to stabilize its financial profile after a large HMO contract expiration with Group Health Cooperative and merger with Yakima (Wash.) Memorial Medical Center.
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