The rating and affirmation on California Health Facilities Financing Authority's bonds, issued for Sutter Health, and the affirmation on California Statewide Communities Development Authority's certificates, also issued for Sutter Health, reflects: Sutter's strong and improving market position, highlighted by the recent acquisition of 420-bed Summit Medical Center in Oakland, Calif., which increases the system's market share in the competitive East Bay service area to about 27%; Management's ability to sustain stable, although somewhat slim, system financial performance, which is characterized by relatively break-even operating profitability, an adequate excess margin of 1.7%, and ample coverage of pro forma maximum annual debt service at 2.7 times (x); and A relatively solid balance sheet with unrestricted liquidity representing over 85% of pro forma
