...The 'AA¡' rating is driven by University of Chicago Medical Center's (UCMC) strong financial profile assessment under Fitch Ratings' "U.S. Not-For-Profit Hospitals and Health Systems Rating Criteria" (published January 2018) in the context of the system's mid-range revenue defensibility and strong operating risk profile assessments. The rating reflects UCMC's capital- related ratios that are strong through-the-cycle in Fitch's rating case, broad reach for high- acuity services, broadly stable service area characteristics, very tight relationship with the University of Chicago (rated `AA+'), and Fitch's expectation that operating EBITDA margin will improve in the coming years as the system continues to absorb Ingalls Health System (which joined UCMC early in fiscal 2017 and is now known as UCM Community Health and Hospital Division). These characteristics are balanced by a high degree of competition in the Chicago area and continued challenges at Ingalls Health (now known as UCM Community...
