Northern Hospital District of Surry County, North Carolina; Hospital

S&P Global Ratings affirmed its 'BBB' rating on Northern Hospital District of Surry County (NHDSC), N.C.'s revenue bonds. The outlook is stable. The affirmation reflects our expectation that the NHDSC will maintain its healthy financial performance and preserve its balance-sheet strengths over the two-year outlook period despite operating as a small hospital with a limited revenue base in an economically challenged service area. In addition, for fiscal 2018, we expect the organization will generate an operating margin in line with or better than that of fiscal 2017, as management focuses on physician alignment and recruitment strategies to bolster utilization. We do not anticipate any additional debt throughout the near term. The rating further reflects our opinion of the NHDSC's: Growing

...S&P Global Ratings affirmed its '###' rating on Northern Hospital District of Surry County (NHDSC), N.C.'s revenue bonds. The outlook is stable. The affirmation reflects our expectation that the NHDSC will maintain its healthy financial performance and preserve its balance-sheet strengths over the two-year outlook period despite operating as a small hospital with a limited revenue base in an economically challenged service area. In addition, for fiscal 2018, we expect the organization will generate an operating margin in line with or better than that of fiscal 2017, as management focuses on physician alignment and recruitment strategies to bolster utilization. We do not anticipate any additional debt throughout the near term. The rating further reflects our opinion of the NHDSC's: + Growing and healthy balance sheet with $63.6 million of unrestricted reserves, or 270 days' cash on hand in fiscal 2017; + Stronger volumes in fiscal 2017, with improving operating performance and maximum annual...

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