...The 'BBB+' Issuer Default Rating is based on Meritus Health's (Meritus) stable financial profile as demonstrated by its leverage relative to liquidity through the cycle in Fitch Ratings' rating case. The rating upgrade to 'BBB+' from 'BBB' is driven by Meritus' strong financial profile assessment under the "U.S. Not-for-Profit Hospitals and Health Systems Rating Criteria," published on Jan. 9, 2018, which place a heightened emphasis on Meritus' manageable leverage through the cycle in Fitch's rating case. While the combination of midrange revenue defensibility, strong operating performance and strong financial performance suggest an upgrade to the 'A' rating category, the criteria allow for the possibility that ratings will fall outside of the suggested rating outcome if other factors are present that are not otherwise captured in Fitch's Key Rating Drivers. The rating is currently constrained by the planned go live of Meritus' Epic electronic health records (EHR) conversion in September...
