The 'A+' rating on California Statewide Communities Development Authority's revenue bonds series 2002A and 2002B, issued for Sutter Health System--as well as the affirmed 'A+' ratings on approximately $1.1 billion in outstanding debt issued for Sutter Health System--are based on: Relatively stable financial performance in fiscal 2001, sufficient to absorb the additional $152 million in new debt and still generate adequate coverage; and Sutter's solid market position in northern California, with 31 hospitals providing revenue diversity and negotiating leverage with payors. Mitigating factors include a relatively weak balance sheet for this rating level and a slight deterioration in Sutter's performance ratios as a function primarily of growth in operating budget, with more profound overall improvement in performance seemingly still somewhat...
Companies mentioned in this report are:
- Sutter Hlth
- California Statewide Communities Dev Auth
Action: New Rating
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Research Type: Full Analysis