S&P Global Ratings affirmed its "BBB" long-term rating on Denver Health and Hospital Authority and revised its outlook to stable from negative.
Concurrently, S&P assigned its "BBB" rating to the health system's proposed $40.92 million series 2018 certificates of participation.
The affirmation and assignment are based on the health system's stable market position, improving operating margins, sound pro forma maximum annual debt service as well as its role as a key provider of ambulatory care services in the Denver market.
The outlook revision to stable from negative is a result of Denver Health's improved operations in fiscal year 2017 and in the first six months of fiscal year 2018.
"DHHA faced a number of one-time challenges in fiscal 2016 and fiscal 2017, but we believe these issues are resolved and the improved operations will be sustained through the outlook period," said S&P analyst Allison Bretz.
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