The assignment and affirmation are based on several factors, including Atrium Health’s large size, historically stable operating performance and solid cash flow metrics. The rating is constrained by Atrium Health’s high capital spending plans and its planned transition to a Medicaid managed care model. In addition, Moody’s acknowledged the health system’s acquisition plan.
The outlook is stable, reflecting Moody’s expectation that Atrium Health will maintain its cash flow margins to make it through its merger and integrate effectively.
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