...S&P Global Ratings' long-term and underlying ratings on Norman Regional Hospital Authority (NRHA), Okla.'s revenue debt, issued for Norman Regional Health System (NRHS), are 'A-'. The outlook is stable. The rating reflects NRHA's stable market position and increasing volumes in a growing primary service area (PSA) anchored by the University of Oklahoma. Although national trends have shown a decrease in inpatient volumes, NRHA's inpatient admissions are increasing, which management attributes to improved physician alignment in the PSA. The rating also reflects NRHA's growing revenue base, continued operating profitability, and sufficient balance sheet metrics. We expect NRHA to meet its fiscal 2019 budget, which is in line with fiscal 2018 performance. The rating also includes a negative holistic adjustment on NRHA that reflects the hospital's soft unrestricted reserves relative to those of similarly rated peers and medians for the rating level. More specifically, the rating reflects our...
