OREANDA-NEWS. S&P Global Ratings assigned its 'AA-' long-term rating to the Oregon Facilities Authority's $279 million series 2016A bonds, issued on behalf of Legacy Health System (Legacy). At the same time, S&P Global Ratings affirmed its 'AA-' long-term rating and underlying rating (SPUR) on Legacy's existing tax-exempt, taxable, and direct purchase bonds (various issuers). The outlook is stable. S&P Global Ratings also affirmed its 'AAA/A-1+' dual ratings on Legacy's series 2008A, 2008B, and 2008C bonds, based on its joint-criteria methodology, which considers the SPUR and the rating on the letter of credit provider, U. S. Bank N. A. (AA-/Stable/A-1+).

The ratings reflect our view of Legacy's very strong enterprise and financial profiles, with a solid share of the competitive Portland market and initiatives to operate under the changes associated with health reform, as well as its strong operating results and robust debt service coverage and improved balance sheet," said S&P Global Ratings credit analyst Allison Bretz. "Although the 2016 debt issuance will weaken the balance sheet somewhat, we believe Legacy has the flexibility to sustain the additional debt at the current rating."

The bonds will fund a tower project on Legacy's flagship campus in Portland and refund some of the system's existing debt.