CHICAGO -- Standard & Poor's upgraded Illinois-based Anderson Hospital two notches citing multi-year operating improvements.

The rating agency moved rating to BBB-plus from BBB-minus on bonds sold in 2006 through the Southwestern Illinois Development Authority.

The outlook is stable, according to a report published Sept. 30.

"The rating action reflects our view of Anderson's continued improved operations coupled with our revised criteria," said Standard & Poor's analyst Brian Williamson. "The stable outlook reflects our anticipation that Anderson will sustain its financial profile at no less than an adequate level as it continues to invest capital into the facilities."

Anderson is a 150-bed hospital in Maryville, near St. Louis.

Standard & Poor's action follows Moody's Investors Service' move in July revising the hospital's outlook on its Baa3 rating to positive from stable on $12 million of rated debt.

"The positive outlook reflects Anderson's significantly improved operating performance for two consecutive years. The hospital also continues to have modest leverage and has substantially grown its cash position in recent years," Moody's wrote.

While Anderson may not be able to sustain very strong operating margins recorded in fiscal 2014, the positive outlook reflects our expectation that the system will continue to generate margins notably better than Baa3 medians, Moody's added.

The Baa3 rating reflects Anderson's small size and leading market share in its primary service area, although the hospital faces competitive pressures from large providers in nearby St. Louis.

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