St. Charles Parish Hospital District No. 1, Louisiana; General Obligation

S&P Global Ratings raised its long-term rating on St. Charles Parish Hospital District No. 1, (St. Charles) La.'s previously issued general obligation (GO) parity debt to 'B+' from 'B'. The outlook is stable. The higher rating reflects sustained improvement in the organization's financial performance, which is largely a result of progress made under a management agreement (effective early in fiscal 2015) with a subsidiary of the Ochsner Health System (Ochsner), a multihospital system that covers a large part of Louisiana and is headquarter in New Orleans. The improved financial performance has translated to a temporary increase in liquidity, though we understand management forecasts a significant spend down in reserves closer to fiscal 2019 levels through elevated capital spending, conservative cash

...S&P Global Ratings raised its long-term rating on St. Charles Parish Hospital District No. 1, (St. Charles) La.'s previously issued general obligation (GO) parity debt to 'B+' from 'B'. The outlook is stable. The higher rating reflects sustained improvement in the organization's financial performance, which is largely a result of progress made under a management agreement (effective early in fiscal 2015) with a subsidiary of the Ochsner Health System (Ochsner), a multihospital system that covers a large part of Louisiana and is headquarter in New Orleans. The improved financial performance has translated to a temporary increase in liquidity, though we understand management forecasts a significant spend down in reserves closer to fiscal 2019 levels through elevated capital spending, conservative cash management assumptions, and intergovernmental transfers to support the State of Louisiana's Medicaid program in fiscal 2021. Despite the expectation of a significant spend down of reserves and...

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