S&P Global Ratings raised the rating to "AA-" from "A+" on Roanoke, Va.-based Carilion Clinic's revenue bonds.
"The upgrade to 'AA-' reflects Carilion's sustained improvement in its financial profile, with three consecutive years of operating margins over 3.5 percent[,] averaging 3.9 percent for fiscal years 2014 through 2016 … improved liquidity and financial flexibility that is consistent with 'AA-' medians, and very strong enterprise profile with a solid and leading business position and experienced management team that is delivering on its key strategic initiatives, providing additional credit strength at the higher rating," said S&P analyst Stephen Infranco.
The outlook is stable, reflecting S&P Global Ratings' expectation the organization will sustain its recent operating improvement.