Moody’s upgraded the credit ratings of Flint, Mich.-based Hurley Medical Center and Toledo, Ohio-based ProMedica Health System on Dec. 16.
Hurley Medical Center
Hurley’s rating was upgraded to “Baa3” from “Ba1.” The upgrade is driven by the health system’s strengthened financial profile, including a fundamentally strong payer mix and continued volume improvement, Moody’s said.
The Baa3 rating also reflects Hurley’s continued essentiality as Flint’s safety-net provider, a Level I trauma center and children’s hospital, according to Moody’s.
Hurley has a stable outlook at its new rating.
ProMedica Health System
ProMedica’s rating was also upgraded to “Baa3” from “Ba1.” Moody’s said the upgrade reflects material and durable improvement in financial performance and liquidity, supported by greater management discipline and credibility and the completion of corporate restructuring with the divestiture of assisted living facilities this year.
Moody’s said the Baa3 rating reflects the health system’s strong market position in northwest Ohio, supported by its extensive hospital and physician network, which drives volume growth in high-acuity services in a competitive region.
ProMedica maintains a positive outlook at its new rating, reflecting projected cash flow margins of 9-10%.
