Holy Redeemer Health System, PA Revenue Debt Rating Raised Two Notches To 'BBB+' On Revised Criteria

NEW YORK (Standard&Poor's) March 2, 2015--Standard&Poor's Ratings Services raised its rating on Montgomery County Higher Education&Health Authority, Pa.'s revenue debt, issued for Holy Redeemer Health System, two notches to 'BBB+' from 'BBB-'. The outlook is stable. Standard&Poor's raised the rating based on the application of its "U.S. Not-For-Profit Acute-Care Stand-Alone Hospitals" criteria, published Dec. 15, 2014, on RatingsDirect. The rating service assesses the enterprise profile as adequate, characterized by the system's low market share and location in a competitive service area; what the rating service considers the extremely strong economic fundamentals in the market where the system operates, however, somewhat offset this. Standard&Poor's assesses the system's financial profile as strong

...NEW YORK (Standard & Poor's) March 2, 2015--Standard & Poor's Ratings Services raised its rating on Montgomery County Higher Education & Health Authority, Pa.'s revenue debt, issued for Holy Redeemer Health System, two notches to '###+' from '###-'. The outlook is stable. Standard & Poor's raised the rating based on the application of its "U.S. Not-For-Profit Acute-Care Stand-Alone Hospitals" criteria, published Dec. 15, 2014, on RatingsDirect. The rating service assesses the enterprise profile as adequate, characterized by the system's low market share and location in a competitive service area; what the rating service considers the extremely strong economic fundamentals in the market where the system operates, however, somewhat offset this. Standard & Poor's assesses the system's financial profile as strong with days' cash on hand and the unrestricted-reserves-to-long-term-debt ratio ahead of medians, coupled with consistent debt service coverage in excess of 3x over the past several...

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