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Fitch Ratings assigns IDR of 'BBB-' to Marshall.

New York: Fitch Ratings, a nationally recognized statistical rating organization (NRSRO) designated by the U.S. Securities and Exchange Commission, assigned an Issuer Default Rating (IDR) of 'BBB-' to Marshall Medical Center (MMC).

The 'BBB-' IDR reflects the application of Fitch's revised criteria "U.S. Not-For-Profit Hospitals and Health Systems Rating Criteria" dated Jan. 9, 2017. In addition, Fitch Ratings has upgraded the rating on the following California Health Facilities Financing Authority bonds, issued on behalf of MMC to 'BBB-' from 'BB+': --$20 million series 2004B auction rate (insured: Ambac Assurance Corporation).

Comparatively weaker fiscal 2017 results reflect disruption from delayed federal approval of California's now-permanent provider fee schedule, though MMC's longer term track record of adequate cost management and consistent volume growth supports Fitch's expectation for a return to historically solid profitability levels.

The 'BBB-' IDR primarily reflects MMC's midrange net leverage profile under a stress scenario through the cycle relative to its operating profile. The Stable Outlook at the higher rating level reflects Fitch's expectation that MMC will improve profitability and operating margins at more historical levels over the medium term and manage its leverage position commensurate with a 'BBB-' rating.

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Publication:Daily the Pak Banker (Lahore, Pakistan)
Date:Apr 27, 2018
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