The affirmation is a result of several factors, including the health system’s strong market position, historically favorable financial performance and improved absolute liquidity metrics in fiscal year 2017. Moody’s also acknowledged the health system’s proposed affiliations, which may dilute debt service coverage and CCHS’ weaker than average operating margins in fiscal year 2016 and fiscal year 2017.
The outlook is stable, reflecting Moody’s expectation that CCHS’ financial performance in fiscal year 2018 will remain similar to fiscal year 2017 with no declines in liquidity.
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