Standard & Poor's Ratings Services said it raised its rating on Camden County Improvement Authority, N.J.'s series 2013A and 2014A bonds issued for Cooper Health System Obligated Group to BBB-plus from BBB.
The outlook is positive.
"The upgrade and positive outlook reflects Cooper's steadily improved operating and financial profiles driven by strategic initiatives including the relatively recent opening of a new patient tower, cancer center affiliation with MD Anderson, and the opening of the Cooper Medical School at Rowan University," said Standard & Poor's credit analyst Cynthia Keller.
There is further potential for an upgrade if Cooper continues to add flexibility into its financial profile through a longer track record of cash flow similar to 2014. However, because of Cooper's reliance on state subsidies and operating and capital grants, to be considered for a higher rating Cooper would also have to demonstrate the ability to adjust to any actual or potential declines in these funding sources, some of which are under pressure.
