The rating affirmation was supported by the system’s strong financial performance. At the end of fiscal year 2014, NRH had $180.5 million in unrestricted cash and investments, or 204.9 days cash on hand.
The rating affirmation was also supported by NRH’s leading market share. The hospital has a market share of approximately 55 percent in its primary service area, while its closest competitor has a market share of about 10 percent.
The hospital also faces some challenges, which were considered for the rating affirmation, such as its high debt burden. NRH’s maximum annual debt service equated to 5.2 percent of its fiscal year 2014 revenue.
More articles on hospital credit ratings:
Moody’s assigns ‘A2′ rating to University Hospitals’ bonds
Moody’s affirms Carolinas HealthCare System’s ‘Aa3’ rating
Fitch affirms Frederick Memorial Hospital’s ‘BBB+’ rating
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