...The 'AA¡' rating is driven by Banner Health's (the system) strong financial profile assessment, successful integration of its Tucson market and significant presence in six western states, although it is concentrated in Arizona and is the largest provider in both Phoenix and the state, combined with Fitch Ratings' expectation of gradual improvements to operating margins that will support ongoing capital spending and liquidity growth. The Rating Outlook is Stable and reflects Fitch's expectation that Banner Health will sustain strong capital related metrics through the cycle in the Fitch Analytical Sensitivity Tool (FAST) scenario analysis consistent with the combination of mid-range revenue defensibility and a strong operating risk profile. Fitch has noted more recent (and projected) operational improvements and Banner Health's commitment to population health. As the industry transitions from volume to value, Banner Health appears to be well positioned for this ongoing sector transition....
