Standard & Poor's Ratings Services said Friday it raised its rating to A-plus from A on Mount Lebanon Hospital Authority, Pa.'s $26.5 million revenue bonds series 2002A, issued for St. Clair Memorial Hospital of Pittsburgh (St. Clair). The outlook is stable.
Standard & Poor's also assigned its A-plus long-term rating to the authority's $22.7 million series 2012 revenue bonds, also issued for St. Clair.
"The higher rating is due to St. Clair's continued financial improvement commensurate with an A-plus rating and growing market share, although St. Clair remains relatively small and is second in market share in its defined service area," said Standard & Poor's credit analyst Liz Sweeney.
Operating performance continued to be strong in fiscal 2011 and the first 11 months of fiscal 2012, in part, because its volumes have grown in contrast to the broader Allegheny County market, which has experienced decreasing volumes. St. Clair's overall financial profile continues to improve and is commensurate with the rating level. The area's weak population trends, the region's very competitive nature with rapidly shifting payor and provider relationships, and St. Clair's highly concentrated payor mix are factors that constrain the rating.
Bond proceeds will be used to retire St. Clair's 2002A bonds. A pledge of gross receipts of St. Clair Memorial Hospital, a 328-licensed-bed facility and the primary subsidiary of the parent organization St. Clair Health Corp., secures the 2012 bonds.
