S&P revises Kaiser Permanente's outlook to positive, affirms bond ratings

Standard and Poor's has revised its rating outlook for Oakland, Calif.-based Kaiser Permanente to positive from stable.

S&P also affirmed the "A+" long-term and underlying ratings on the health system's existing debt, and affirmed the "A+/A-1", "A+", and "A-1" ratings on Kaiser's outstanding bonds.

The outlook revision was based on Kaiser's sharp growth in membership in 2014 after many years of stability, combined with ongoing strengthening of its already-robust financial profile, according to S&P.

Kaiser is one of the country's largest health insurance providers and has the largest integrated delivery system in California, but also continues to benefit from a well-established market position in other states as well, according to S&P. The system includes 38 hospitals, more than 600 medical and clinical buildings, 17,000 physicians and almost 175,000 employees. 

 

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