OU Health, OK Bond Rating Outlook Revised to Stable From Negative On Improved Financial Picture

DALLAS (S&P Global Ratings) July 21, 2023--S&P Global Ratings revised its outlook to stable from negative and affirmed its 'BB-' long-term rating on the Oklahoma Development Finance Authority's series 2018B tax-exempt fixed-rate bonds and series 2018C taxable fixed-rate bonds, issued for OU Medicine Inc. (OUMI), now doing business as OU Health. In addition, we affirmed our 'BB-' underlying rating (SPUR) on the insured maturities of the authority's series 2018B and 2018C bonds, also issued for OUMI. The outlook on all ratings, where applicable, is stable. "The stable outlook reflects our view that the financial profile has largely stabilized, with no further declines in year-end unrestricted reserves or added debt expected," said S&P Global Ratings credit analyst Patrick Zagar. In addition,

...July 21, 2023 DALLAS (S&P Global Ratings) July 21, 2023--S&P Global Ratings revised its outlook to stable from negative and affirmed its '##-' long-term rating on the Oklahoma Development Finance Authority's series 2018B tax-exempt fixed-rate bonds and series 2018C taxable fixed-rate bonds, issued for OU Medicine Inc. (OUMI), now doing business as OU Health. In addition, we affirmed our '##-' underlying rating (SPUR) on the insured maturities of the authority's series 2018B and 2018C bonds, also issued for OUMI. The outlook on all ratings, where applicable, is stable. "The stable outlook reflects our view that the financial profile has largely stabilized, with no further declines in year-end unrestricted reserves or added debt expected," said S&P Global Ratings credit analyst Patrick Zagar. In addition, despite immense sector labor and inflationary pressures, operations remained fairly resilient in fiscal 2023 supporting projected year-end debt service coverage of 1.5x. Management also...

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