The ‘AA’ rating reflects Children’s Health Care’s (d/b/a Children’s Minnesota, or Children’s Hospitals and Clinics of Minnesota) strong balance sheet and robust liquidity. The rating also reflects Fitch Ratings’ expectation of a marginal operating improvement over the next two to three years as Children’s Minnesota starts an electronic health record (EHR) conversion project while focusing on operating efficiencies and key service line growth. Fitch expects operating EBITDA margins to reach about 7% by fiscal 2027, following compressed margins in fiscal 2023, with operating and EBITDA margin of 2.8%, and an expected operating EBITTDA margin of about 4% in fiscal 2024.
Fri 10 Jan, 2025