UHS plans to use the proceeds of the offering to pay off portions of its revolving credit facility and other debt obligations. Moody’s analysts said they think UHS will have enough financial leverage to remain comfortably within the Ba rating category, which is considered junk bond status, but the for-profit hospital chain’s continued drive toward acquisitions could hinder future debt repayments.
“Moody’s expects that the company will continue to be acquisitive and invest in the growth of its behavioral health segment, which will limit debt repayment and near-term credit metric improvement,” according to Moody’s report. “[However,] if the company can grow EBITDA or repay debt such that leverage is expected to be sustained below 3.0 times and free cash flow to debt is expected to be sustained above 10 percent, Moody’s could upgrade the rating.”
More Articles on Universal Health Services:
9 Major For-Profit Hospital Operators Release Quarterly Earnings
Largest Executive Stock Awards at 8 Major For-Profit Hospital Operators Last Year
FTC Clears MultiCare’s Purchase of Auburn Regional Med Center
Becker’s 3rd Annual Fall Chief Pharmacy Officer Summit is the top tier event that the people leading the future of pharmacy convene. This 3-day event is built specifically for Chief Pharmacy Officers and senior pharmacy leaders. The sessions examine the workforce, financial and clinical priorities shaping pharmacy today. Becker’s is where candid discussions flourish and new ideas thrive. Becker's 3rd Annual Fall Chief Pharmacy Officer Summit
