Standard & Poor’s Tuesday upgraded the long-term and underlying ratings of the Scripps Health hospital system to AA-minus from A-plus.
The move came in connection with the San Diego County nonprofit’s plans to issue $200 million in new debt using the California Health Facilities Finance Authority as a conduit.
“The rating upgrade is due to our view of Scripps’ continued strong operating performance and cash flow and improved liquidity,” analyst Emily Wong said in a news release.
“The upgrade also reflects our view of additional information we have obtained regarding Scripps’ capital plan and current debt issue and assumes that Scripps will manage its capital spending plan prudently,” she said.
Fitch Ratings upgraded the Scripps debt to AA-minus in late December. Moody’s Investors Service on Tuesday affirmed its A1 rating.
Scripps is planning to sell about $100 million in fixed-rate debt and $100 million in variable-rate debt, according to the ratings reports. JPMorgan and Barclays Capital are managers, according to CHFFA documents.
The $100 million fixed rate deal is on next week’s new issuer calendar. Kaufman Hall is financial advisor.
