Moody's Investors Service assigned its "Baa1" rating to Grand Forks, N.D.-based Altru Health System's proposed $58 million series 2017 revenue bonds to be issued by the City of Grand Forks.
Additionally, Moody's affirmed the "Baa1" rating on Altru Health System's parity debt, affecting $183 million of outstanding debt.
The rating assignment and affirmation is a result of several factors, including the health system's strong market position, consistent operating performance and good management. Moody's additionally acknowledged challenges the system faces such as difficulty with physician recruitment, strong competition in its service area, increased debt and future renovations to the main building.
The outlook is stable for the ratings, reflecting Moody's expectation that the system will maintain a solid balance sheet and produce substantial coverage levels despite the challenges.