Moody's Investors Service affirmed its "A1" rating on Midland, Mich.-based MidMichigan Health's outstanding bonds, affecting $167 million of debt.
The affirmation is a result of several factors, including MidMichigan Health's strong liquidity position, favorable debt load, leading market position and affiliation with Ann Arbor-based University of Michigan Health System, which drives patient volume. Moody's also acknowledged the health system's expectations of constrained margins in fiscal year 2018 and high reliance on government payers.
The outlook is stable, reflecting Moody's expectation that the health system's margins will return to historical levels in fiscal year 2019.