Standard & Poor's Ratings Services said it raised to A-minus from BBB-plus the ratings on Northampton County General Purpose Authority, Pa.'s and Lehigh County General Purpose Authority, Pa.'s revenue bonds and New Jersey Health Care Facilities Financing Authority's bonds, all issued for St. Luke's University Health Network (SLUHN; formerly known as St. Luke's Hospital & Health Network).
The outlook is stable.
It also assigned an A-minus rating and stable outlook to the series 2015 A and B bonds issued by Pocono Mountains Industrial Park Authority, Pa. for St. Luke's.
"The higher rating reflects our view of the more-diverse revenue base, solid operating performance, and debt service coverage of St. Luke's," said Standard & Poor's credit analyst Jessica Goldman.
While St. Luke's is issuing additional debt with the series 2015 bonds ($75 million), there has been sufficient balance-sheet growth in recent periods, coupled with adequate income statement metrics and a business position that are more in line with the A-minus rating. The new debt will finance the construction of an inpatient facility in Monroe County.
St. Luke's Hospital of Bethlehem, the network's flagship, Warren Hospital, and Anderson Hospital are currently members of the obligated group. With the 2015 bond transaction, St. Luke's Monroe Campus will become part of the obligated group. St. Luke's operates on six campuses, with 1,062 licensed beds.
