Standard & Poor's Ratings Services said it raised its long-term and underlying ratings on various series of bonds issued by Minneapolis, and the Minnesota Agricultural & Economic Development Board for Fairview Health Services to A-plus from A.
The outlook is stable.
Long-term debt outstanding at fiscal year-end Dec. 31, 2014, was $904.04 million.
"The upgrade reflects our view that Fairview's patient utilization and market share are growing and its financial performance and debt service coverage are strong with growing unrestricted reserves and a modest debt burden," said Standard & Poor's credit analyst Ken Rodgers. "Also, reflected in the rating action is our belief that governance and management and ties with the University of Minnesota and its associated physician organization have improved over the past two years even though there was an unexpected change in senior leadership at Fairview early this year and further improvement in governance and management is anticipated."
