Sacramento, Calif.-based Sutter Health saw various credit ratings upgraded to “A+” from “A,” Fitch said April 24.
The move followed an “A+” rating assigned on $750 million of new debt. The outlook is stable.
The 27-hospital system has reported two straight years of positive operating income, Fitch said, recording $278 million in fiscal 2022, an improvement on $199 million in 2021.
This was “particularly impressive given the considerable macro labor and inflationary challenges faced by the sector,” according to the research note.
Sutter Health, which has appointed Dominic Nakis as its interim CFO as the system seeks a permanent hire, serves approximately 3.3 million Californians and operates a health insurance plan with about 100,000 members.