...Analytical Conclusion: The `A' Issuer Default Rating (IDR) and revenue bond ratings reflect Western Connecticut Health Network's (WCHN) leading market position in the Danbury, CT region, bolstered by its large employed physician base. Fitch Ratings believes that WCHN's operating cost flexibility will rebound after several years of softness due to Medicaid supplemental funding cuts and wage and benefit expense pressures. The rating is also based on Fitch's expectation that WCHN will maintain its financial profile and satisfactory leverage ratios consistent with the `A' rating category. The revenue bond rating is also removed from Negative Watch where it was placed on Sept. 8, 2017 due to the potential risk of rating transition under Fitch's "Exposure Draft: U.S. Not-for- Profit Hospitals and Health Systems Rating Criteria" dated Sept. 6, 2017. WCHN's overall leverage profile was identified as deviating from the expectations for the `A' rating category. However, the affirmation of the revenue...
