St. Cloud, Minn.-based CentraCare, which operates eight hospitals, had both its default rating and that on various bonds affirmed at “AA-” as the health system continues to enjoy strong local market share and solid financial operations, Fitch Ratings said March 3.
In addition, CentraCare’s management has shown a strong focus on reining in costs caused by inflationary pressures and the system’s outlook is stable, Fitch said. More than $100 million in operating improvements have been identified by management over the next five years.
The system’s total service area covers 18 counties in Central/Western Minnesota, and CentraCare is also boosted by the low local unemployment rate of 3.3 percent, below the national average, Fitch said.
Total audited operating revenue was almost $1.9 billion in fiscal 2022, Fitch said. CentraCare also operates senior living facilities, pharmacies and a physician group as well as its hospitals.