OhioHealth bond ratings affirmed at AA+ with stable outlook

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OhioHealth AA+ bond ratings

Highlights

Fitch Ratings affirmed OhioHealth Corporation's Issuer Default and revenue bond ratings at 'AA+' with a stable outlook, citing a low debt burden and strong cash flow.
OhioHealth benefits from a broad regional presence across a 50-county area and maintains leading market position, supporting patient volume and revenue stability.
Operating EBITDA has averaged 11.6% over five years, with Fitch projecting ongoing strong cash flow of 9.5% to 10.0% amid sector headwinds.

Rating action and credit strengths

As reported by Fitch Ratings, the agency has affirmed OhioHealth Corporation's Issuer Default Rating and revenue bond ratings at 'AA+', along with its 'F1+' short-term rating on variable rate demand bonds supported by self-liquidity.

The rating agency says the stable outlook reflects expectations that OhioHealth's low debt burden and very strong cash flow will continue to support a balance sheet that remains at or above historical levels. The bonds are secured by the full faith and credit of OhioHealth Corporation and are a general obligation of the corporation and members of the Obligated Group.

Fitch says the 'AA+' ratings are supported by exceptionally strong leverage metrics and consistently strong operating cash flow. It also points to OhioHealth's broad regional operating platform and leading market position across its 50-county service area.

Regional demand and operating profile

OhioHealth operates in a rapidly growing and economically diverse region, a factor that supports its patient volumes and revenue base. Medicaid and self-pay together account for about 18% of gross revenues, while Medicare continues to rise with an aging population.

Fitch says strong inpatient and outpatient volume trends, along with large annual increases in unique patients, reflect the depth and reputation of OhioHealth's clinical network. The agency describes the system's operating risk profile as very strong and durable, noting resilience even during periods of sector-wide stress.

Over the past five years, operating EBITDA has averaged 11.6%. Looking ahead, Fitch expects the system to continue generating strong cash flow of about 9.5% to 10.0%, even as it faces regulatory and other market headwinds.

Our earlier coverage of Fitch’s affirmation of Becle’s 'BBB' rating with a Stable Outlook explained how the agency balanced near-term revenue pressure from a U.S. distributor transition and softer North American demand against the company’s strong liquidity and conservative leverage. The report highlighted expectations for steady margins and sustained positive free cash flow, supporting Becle’s ability to keep net leverage low through the transition period.

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