Standard & Poor’s last week revised its outlook to positive from stable on Northfield Hospital’s low investment-grade rating of BBB-minus.
“The positive outlook reflects our view of [Northfield Hospital & Clinics’] improved operating performance and debt service coverage in fiscal 2010 after a few years of operating challenges, as well as NHC’s maintenance of its balance sheet and strong market position,” said analyst Robert Dobbins.
NHC is the dominant primary hospital in the service area and has developed a beneficial partnership with the Mayo Clinic Health System that has helped improve its operating margins, strengthen its debt service coverage, and improve its liquidity over the last couple of years.
