...The affirmation of Novant Health, Inc.'s (Novant) 'AA¡' rating despite a sizable increase in debt reflects Fitch Ratings' belief that the near-term effects of the debt on the health system's balance sheet are offset by its expanded market position into a demographically strong growth region of coastal South Carolina. Fitch also expects Novant's debt service coverage to remain strong for a 'aa' category rating. In February 2024, Novant purchased three hospitals (Hilton Head Hospital in Beaufort County, Coastal Carolina Hospital in Jasper County and East Cooper Medical Center in Charleston County, along with affiliated operations) with $2.4 billion in temporary debt that is being refinanced with this bond transaction. Fitch expects the acquisition to be accretive to Novant's operating performance as the hospitals are highly profitable, focused heavily on surgical volume and located in areas that have population growth and good income levels. The purchase expands Novant's footprint in South...
