Standard & Poor's Ratings Services said it raised its rating and underlying rating to A from A-minus on the Washington Health Care Facilities Authority's hospital revenue bonds (series 2005A, 2005B, and 2010) issued on behalf of Overlake Hospital Medical Center.
The outlook is stable.
"The raised ratings reflect our view of Overlake's improved operating performance following a dip in fiscal 2013 driven in part by an electronic medical record conversion," said Standard & Poor's credit analyst Kenneth Gacka. "Although the overall sector faces challenges in coming years associated with reimbursement pressures and investments to prepare for changing delivery models, we anticipate that Overlake will continue to leverage its strong enterprise profile to generate more favorable margins, as demonstrated in the year-to-date results," continued Gacka.
