Holy Redeemer Health System gets a credit upgrade
Standard & Poor's Ratings Services boosted Holy Redeemer Health System's credit rating by two notches, from the lowest investment-grade rating of "BBB-" to "BBB+."
Standard & Poor's Ratings Services boosted Holy Redeemer Health System's credit rating by two notches, from the lowest investment-grade rating of "BBB-" to "BBB+."
The new rating was prompted by new credit rating criteria published by Standand & Poor's in December.
Holy Redeemer received more credit for its relatively strong balance sheet - reflected in its strong cash position and its relatively low ratio of unrestricted assets to long-term debt - than it did under the old system.
The Montgomery County system's historically low operating profit margins used to weigh more heavily against it.
In the six months ended Dec. 31, Holy Redeemer had an operating profit of $611,000, compared to a loss of $2.5 million during the same period of 2013.
Standard & Poor's said the application of the new criteria was expected to result in upgrades for just 10 percent of the 400 U.S. not-for-profit acute-care health care providers, most by one notch.
215-854-4651
@InqBrubaker