...The `A' rating reflects Dartmouth Health's (DH) position as the leading acute care provider in a broad, multistate and demographically stable market, which Fitch Ratings believes helps to maintain its competitive advantage and supports its revenue defensibility. DH's market position and high acuity patient mix, increased capacity and expanded market presence should allow for strengthening of its operating risk profile. The Stable Rating Outlook reflects six consecutive quarters of positive operating performance and improved liquidity. The Rating Outlook also assumes DH will continue to demonstrate progress toward a 3% operating margin, which is necessary to support the upcoming capital spend and the rebuilding of leverage metrics. If margins do not demonstrate continued incremental improvement, it could pressure the rating. Proceeds from the series 2025 issuance will be used to fund various capital projects, including the completion of shelled floors in the new inpatient tower that opened...
