Moody's affirms King's Daughters' Health's 'Baa2' rating, outlook stable

Moody's Investors Service has affirmed Madison, Ind.-based King's Daughters' Health's "Baa2" long-term rating on approximately $100 million of series 2010 fixed rate revenue bonds.

The affirmation was based on a number of factors, including KDH's leading market position and improved operating results.

KDH has a growing market position, with 48 percent of the market share in its primary services area. The hospital faces little competition, as no other hospital in KDH's primary service area has more than a 6 percent market share.

From 2009 to 2013, the hospital's operating cash flow margins ranged between 7.8 percent and 11.8 percent. However, in the first half of 2014, KDH rebounded with an 11.4 percent cash flow margin.

The stable outlook is based on the expectation KDH will maintain good operating margins and grow its already leading market share position.

More articles on hospital credit ratings:

Fitch assigns 'BBB+' rating to Catholic Health Services of Long Island's bonds 
Moody's affirms Centra Health's 'A2' rating 
Fitch downgrades El Paso County Hospital District's bonds to 'AA-' 

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