Standard & Poor's Ratings Services said it raised its rating on West Shore Area Authority, Pa.'s series 2011B revenue bonds issued for Holy Spirit Hospital to AA from A.
The outlook is stable.
"We upgraded holy Spirit because Geisinger Health System (GHS), Pa., has secured the bonds through a master trust indenture, effective Jan. 30, 2015," said Standard & Poor's credit analyst Jessica Goldman.
Holy Spirit Hospital, which is part of Holy Spirit Health System (HSHS), and its affiliates, became a formal affiliate of Geisinger Health System in Danville, Pa., effective Oct. 1, 2014.
GHS became the sole corporate member of HSHS on that date. Geisinger subsequently issued a consent solicitation to bondholders of Holy Spirit Hospital's two bond issues, series 2011 and 2011B, requesting approval for, among other things, the substitution of GHS' master trust indenture (MTI) for the Holy Spirit MTI.
The solicitation was successful for the series 2011 bonds and the MTI substitution occurred on Dec. 19, 2014. The solicitation was successful for the series 2011B and occurred on Jan. 30, 2015.
The stable outlook mirrors GHS' stable outlook.
