Fitch Ratings has affirmed the respective 'AA-' and 'AA-/F1+' ratings on the The Rating Outlook is revised to Positive from Stable.
Debt payments are secured by a gross revenue pledge of the obligated group.
KEY RATING DRIVERS
CONSISTENT FINANCIAL IMPROVEMENT: The Positive Outlook is based on the confluence of sustained operating improvement, robust debt service coverage and SHC's success with their fundraising effort in support of their capital project.
EXCELLENT CLINICAL AND RESEARCH REPUTATION: SHC's reputation and brand recognition for excellent tertiary and quaternary care and state of the art clinical research is a primary credit strength as the organization continues to diversify its revenue base through strategic growth initiatives regionally, nationally and internationally. SHC is leveraging its information technology resources in partnerships with eight leading
RELATIONSHIP WITH STANFORD UNIVERSITY:
GROWTH STRATEGY: SHC is investing in near-term growth in certain strategic clinical services in which it has demonstrated distinction. The strategic plan also calls for strengthening local market presence and promoting growth in higher acuity procedures. Fitch believes this strategy should serve SHC well in the large and highly competitive
CONSTRUCTION PROGRESS: Fitch believes the reduction in development risk as the project moves forward and continued successful fundraising coupled with its strong financial profile positions SHC for positive rating movement in the near term.
Fitch Ratings has affirmed the respective 'AA-' and 'AA-/F1+' ratings on the
The Rating Outlook is revised to Positive from Stable.