Moody’s assigns ‘Baa3’ rating to SoutheastHealth’s bonds

Moody’s Investors Service assigned its “Baa3” rating to Cape Girardeau, Mo.-based SoutheastHealth’s proposed $86.9 million series 2017A and $6.29 million series 2017B revenue bonds, to be issued through the Industrial Development Authority of the County of Cape Girardeau and the Industrial Development Authority of Stoddard County. The bonds will mature in 2042.

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The rating assignment is based on several factors, including SoutheastHealth’s improving financial performance following a decline caused by a difficult EMR installation. SoutheastHealth also improved its financial position by restructuring its debt and properly managing capital spending. Moody’s also acknowledged the health system’s high dependency on government payers, aging population and competitive market.

The outlook is stable, reflecting Moody’s expectation that SoutheastHealth will maintain its stable operating performance to build liquidity. 

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