Lee Memorial Health System, FL 2019A-C Bonds Rated 'A+'; Outlook Stable

NEW YORK (S&P Global Ratings) March 14, 2019--S&P Global Ratings assigned its 
'A+' long-term rating to Lee Memorial Health System Board of Directors, Fla.'s 
series 2019A-C bonds, issued for Lee Memorial Health System (LMHS). In 
addition, we affirmed our 'A+' long-term rating and underlying rating (SPUR) 
on Lee Memorial Health System Board of Directors, Fla.'s series 2007A and 2010 
hospital revenue bonds, issued for LMHS. 

The $42 million series 2010 bonds are taxable and issued under the Build 
America Bonds (BAB) program. The outlook on all series of debt is stable. 

We last reviewed our rating on LMHS in December 2018, at which time we raised 
the rating to A+' from 'A' reflecting the application of "U.S. And Canadian 
Not-For-Profit Acute Care Health Care Organizations" criteria published on 
March 19, 2018.

"The rating reflects LMHS's solid enterprise profile, anchored by its 
excellent market position in Lee County, which is experiencing strong 
population growth and favorable economic trends," said S&P Global Ratings 
credit analyst Stephen Infranco. Improved population growth for Lee County is 
having a positive impact on overall economic trends and business volume 
statistics, driving revenue gains and profitability. Furthermore, LMHS 
maintains a sound financial profile, despite a period of higher-than-normal 
capital spending phase. 

The stable outlook reflects our view of LMHS' ability to continue generating 
positive operating results and good cash flow, capitalizing on favorable 
economic trends and projected growth in population. While we recognize there 
are pressure points, we expect LMHS will be able to navigate the challenges 
and adjust accordingly, including reducing or delaying some capital spending 
if needed. We also believe LMHS's enterprise profile provides stability as it 
is not faced with the same competitive threats as some other similarly rated 
health systems. 
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