Fitch Ratings Affirms Sierra View Local Healthcare District ‘A’ Rating

With an exceptional series 2019 and series 2020 revenue bonds, Fitch Ratings, an award-winning provider of credit ratings and commentary and research, affirms Sierra View Local Healthcare District's (SVMC) ‘A' rating for the fifth consecutive year. This rating denotes high credit quality and the capacity for payment of financial commitment is considered strong.

According to the findings within the Fitch Ratings report, Sierra View Medical Center has a strong financial profile that provides the district ample financial flexibility to manage staffing shortages, increased contract labor usage, and heightened inflationary-related expenses. The 'A' rating continues to be constrained by a small population and revenue base that can lead to operational variability and the district's reliance on a small number of physicians for patient revenues.

Key rating drivers include:

• High Governmental Payor Mix in a Limited Service Area
• Pressured Operating Performance, Limited Capital Needs
• Stable Financial Profile Through the Five-Year Scenario
   

In addition to the ‘A’ rating, the Rating Outlook remains stable, as a result of Sierra View's strong balance sheet. SVMC continues to prioritize strategic ways to achieve a fiscally sound facility. The hospital’s healthcare team’s readiness to serve the residents of Porterville and surrounding areas impacts the local economy, the district, and the livelihoods of its community. To read the Fitch Rating article, visit fitchratings.com.