Acquisition by HCA would be 'credit positive' for Catholic system: Moody's

Manchester, N.H.-based Catholic Medical Center's plans to join Nashville, Tenn.-based HCA Healthcare would be "credit positive" for the 330-bed regional health system, according to Moody's. 

CMC announced on July 1 that it entered into an asset purchase agreement with a subsidiary of HCA and initiated the regulatory review process with the New Hampshire Attorney General's Office. 

Moody's said in a July 3 report that the transaction would provide "essential scale and resources to CMC as it faces significant operating challenges."

"Assuming successful integration, CMC's financial performance will improve as it takes advantage of HCA's large economies of scale, which provide considerable competitive and operating benefits, including substantial discounts on hospital supplies and services," Moody's said. "Additionally, HCA has significant experience acquiring and integrating smaller hospitals in existing markets."

Moody's said the transaction would be credit neutral for HCA. CMC has a Ba1 rating and a negative outlook with Moody's. HCA has a Baa3 rating and stable outlook with the rating agency.

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