Moody's Investors Service assigned its "Aa3" rating to Morristown, N.J.-based Atlantic Health System's proposed $250 million series 2017 bonds.
Moody's also upgraded the rating to "Aa3" on Atlantic Health System's outstanding debt, affecting $612 million of rated debt.
The assignment and upgrade are a result of several factors, including AHS' strong market position, solid revenue growth, stable operating performance and increasing balance sheet metrics. Moody's also acknowledged the risks associated with the health system's upcoming EMR implementation and debt structure changes.
Atlantic Health System's outlook was revised to stable from positive with the upgrade. Moody's said the stable outlook reflects the expectation that AHS' stable operating margins and favorable balance sheet will continue to offset the increase in capital spending.