CHICAGO — The outlook on Iowa Board of Regents' University of Iowa Hospitals and Clinics AA rating is now stable, up from negative, according to Standard & Poor's.
"The outlook revision reflects our understanding that the medical center has scaled back its sizable capital spending plans to manage the pacing of its capital projects and to maintain unrestricted reserves at a level above 200 days," said Standard & Poor's analyst Karl Propst.
The action affects $356 million of debt from series issued in 2007, 2009, 2010, 2011, and 2012.
"Depending upon its timing and how it is funded, future capital spending could further constrain financial metrics and, if material, could affect the rating or outlook," Propst wrote.
The credit benefits from the hospital system's strong business position and growing use and affiliation with the university's School of Medicine as well as consistently healthy operations.
Standard & Poor's shifted its outlook to negative last year over the hospital system's capital plans and its impact on its balance sheet measurements.