OREANDA-NEWS. S&P Global Ratings raised its long-term rating on Coffee County Hospital Authority, Ga.'s series 2004 tax exempt revenue bonds, issued for Coffee Regional Medical Center Inc. (CRMC) to 'BB' from 'BB-'. The outlook is positive.

"We assessed CRMC's enterprise profile as adequate characterized by a dominant market share in a limited service area," said S&P Global Ratings analyst Aamna Shah. "We also assessed CRMC's financial profile as adequate based on sustained improvement in most key metrics since fiscal 2013." More specifically, operating margins have been quite robust compared with prior years as a result of operational improvements led by management, including a new chief financial officer (CFO) who joined the organization in 2015. We anticipate that financial performance will remain in line with recent results because of the improvements evident in CRMC's operating performance. Furthermore, CRMC has improved its balance sheet materially over the past year. We think these combined credit factors lead to an indicative assessment of 'bb'. The final 'BB' rating on the Hospital's bonds reflects our holistic view of the hospital's current market position and positive operational and financial trend.

The 'BB' rating is based on our view of CRMC Health Care Systems group credit profile (GCP) and the obligated group's core status.

The positive outlook reflects our view that CRMC is well positioned to continue to post margins in line with recent history due to operational improvements implemented by management. The outlook further reflects our expectation that management will continue implementation of cost control initiatives which may result in sustained improvements to operations and the balance sheet.

We could raise the rating during the one-year outlook period in case of sustained improvements to operations as well as commensurate growth in unrestricted reserves.

While not anticipated, we may consider lowering the rating within the one-year outlook period in the unlikely event that operations show no signs of sustained improvement, or if unrestricted reserves suddenly weaken, resulting in cash falling to less than 65 days.

CRMC currently operates a multi-specialty, general medical and surgical hospital licensed for 88 acute care beds in Douglas, Georgia, with a total revenue of $102 million.