Fitch Ratings has upgraded Olmsted Medical Center’s rating one notch to BBB-plus from BBB in recognition of the Minnesota hospital’s strong financial performance.

The upgrade and assignment of a stable outlook affects $27 million of debt sold in 2004, 2006 and 2010 that is secured by a pledge of gross receipts and a debt service reserve.

“OMC has demonstrated very stable performance over the last five years,” Fitch analysts wrote. Challenges include a relatively small revenue base.

The system operates in Rochester, home of the Mayo Clinic, but is focused more on the primary and secondary services in the area, while Mayo generally is focused on the higher acuity services.

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