A.M. Best upgrades Valley Baptist Insurance on improved performance

A.M. Best on Sept. 12 upgraded Valley Baptist Insurance Co. and assigned its ratings a stable outlook as a result of the company's acquisition by Vanguard Health Systems Inc. and improved operating performance.

Valley Baptist's financial strength rating was raised to B+ from B, and its issuer credit rating was increased to "bbb-" from "bb."

The rating agency said Valley Baptist plays a strategic role in the health system and has benefited from capital contributions from Vanguard. Vanguard also guarantees all of the insurer's liabilities.

In addition, operating efficiencies from the Vanguard health care network and corrective measures implemented by management have boosted operating results through the first half of 2012.