...Standard & Poor's Ratings Services raised its rating on Montgomery County Higher Education & Health Authority, Pa.'s revenue debt, issued for Holy Redeemer Health System (HRHS), two notches to '###+' from '###-'. The outlook is stable. We raised the rating based on the application of our "U.S. Not-For-Profit Acute-Care Stand-Alone Hospitals" criteria, published Dec. 15, 2014, on RatingsDirect. We assess the enterprise profile as adequate, characterized by the system's low market share and location in a competitive service area; this, however, is somewhat offset by the extremely strong economic fundamentals in the market where the system operates. We assess the system's financial profile as strong with days' cash on hand and the unrestricted-reserves-to-long-term-debt ratio ahead of median levels, coupled with consistent debt service coverage (DSC) in excess of 3x over the past several fiscal years. What we regard as a high average age of plant and modest, though consistent, operating margins...
