Hackensack Meridian Health Fitch Ratings and S&P Global Ratings Once Again Reaffirms Health Network’s ‘AA-’ with Stable Outlook

Hackensack Meridian Health, New Jersey’s largest and most comprehensive health network, is proud to announce that leading credit rating agencies, Fitch Ratings and S&P Global Ratings, once again reaffirmed the network’s ‘AA-’ rating with a stable outlook.

“As New Jersey’s largest health network, Hackensack Meridian Health is proud that our network continues to maintain strong bond ratings from Fitch and S&P,” said Robert C. Garrett, FACHE, chief executive officer of Hackensack Meridian Health. “While this continues to be a challenging time for the healthcare industry, our strong rating demonstrates our forward-thinking approach to transforming the way health care is delivered.”

According to the S&P Global Ratings credit analyst, this rating reflects Hackensack Meridian Health’s healthy market position as a regional clinical and market leader supported by management’s capital and strategic investments designed to grow and diversify revenue and volume. Both Fitch and S&P have assigned the highest possible rating to Hackensack Meridian Health’s commercial paper issuance. The ratings reflect the following:

• Geographic and financial diversity with leading market share and strong volume growth in many markets;
• A multi-year trend of rising operating margins since fiscal 2021;
• Solid and stable unrestricted reserves with cash on hand expected to remain above 200 days;
• Low average age of plant that offers some flexibility around the pace of capital spending, if necessary; and
• Conservative balance sheet with a largely fixed-rate debt structure and pension plan assets above liabilities at the end of fiscal 2023.

“These positive assessments of Hackensack Meridian Health are a testament to our world-class team members,” added Garrett. “We are successfully strengthening our financial position, demonstrating our commitment and success in improving the health care experience, and providing more patients with access to high-quality, compassionate care.”

In addition, both reports point to Hackensack Meridian Health’s positive demand for services. Higher acuity volume and rate increases have generated healthy revenue increases, along with various increasing sources of provider relief and other special funding, sufficient to offset inflationary pressures and keep operating income consistently positive. The reports also note that Hackensack Meridian Health’s new ambulatory facilities offer a broader, more comprehensive array of services than others in the marketplace.