...Analytical Conclusion: Fitch Ratings' `AA¡' rating reflects our view of Providence Health and Services's (Providence) position as the leading acute care provider in multiple growing and demographically favorable markets, which insulates Providence from significant competition and supports midrange revenue defensibility over the long term. Fitch also affirms the`F1+' self- liquidity rating based on Providence's unrestricted cash reserves and linkages to the Providence `AA¡' long-term rating. In addition, Providence has improved on overall operating income and EBITDA margins over the past two years. Fitch believes that their current trajectory will continue, with operations eventually generating operating EBITDA and EBITDA margins of 8% to 9% and 9% to 10%, respectively. The rating also reflects Fitch's expectations that Providence's absolute levels of liquidity and overall leverage profile will continue to improve over the near to longer term as Providence produces stronger cash flow, continuing...
