S&P Global Ratings assigned its 'BBB-' rating to the New Jersey Health Care Facilities Financing Authority's series 2016 bonds, issued for St. Joseph's Healthcare System (SJHS). At the same time, we affirmed our 'BBB-' rating on the authority's series 2008 bonds issued for SJHS. The outlook on all ratings is positive. We revised the outlook to positive in November 2015 and it continues to reflect our view of recent improvement in operations and balance sheet metrics, and strategies implemented to sustain operating margins at a level that could be in line with a higher rating and maintenance of liquidity measures. A higher rating is precluded due to some expected balance sheet strain from additional debt and uncertainty around the legal
