The ratings actions took place less than a week after Fitch revised its outlook for St. Cloud-based CentraCare Health from 'Negative' to 'Stable.'
Fitch Ratings upgraded Sanford Health and downgraded Summa Health Wednesday afternoon.
Fitch upgraded Sanford's outstanding bonds to 'AA-' and its outlook was revised to 'Stable.'
"Sanford's geographic multi-state dispersion (located in four states for acute care services), solid market presences and the fact that it's not dependent on any one location for operational success, is a notable credit positive," the report stated. "Positive strides at Good Samaritan, Sanford's growing health plan, and Fitch's expectation for continued improvement and balance sheet growth, with limited capital over the near term, all support the 'AA-' rating."
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Meanwhile, Summa Health's Series 2021 bonds were assigned a 'BBB+' rating, down from an 'A-' rating. The Toledo-based health system did maintain a 'Stable' outlook.
"Factors that support the rating include Fitch's view that Summa's integrated operations are stable (around the 7% operating EBITDA level) and that the organization is a relevant provider in a competitive and consolidating market," the report stated. "Furthermore, the redemption of HSP, which is a division of Bon Secours Mercy Health System (BSMH), removes the uncertainty that had lingered over Summa as it approached the end of that 10-year partnership in 2023."
The ratings actions took place less than a week after Fitch revised its outlook for St. Cloud-based CentraCare Health from 'Negative' to 'Stable.'
Jack O'Brien is the Content Team Lead and Finance Editor at HealthLeaders, an HCPro brand.