...The 'AA' Issuer Default Rating (IDR) and revenue bond rating reflect Fitch Ratings' expectations that Scripps Health's (Scripps, or the healthcare provider) balance sheet strength will easily withstand the short-term margin compression it experienced in 2017 (compared to historic levels) and rebound to more consistent operational levels. With its many years of steady and successful operations, Scripps is more than adequately prepared to manage through a period of softer operating performance, having built cash reserves over time. Fitch expects that for the foreseeable future, the healthcare provider will maintain its robust capital spending, keeping it well in excess of annual depreciation over the next five years. Scripps Health's balance sheet is strong enough to remain stable through the cycle, with metrics that are consistently in line with the 'AA' rating category....
