Moody’s affirms ‘A1’ rating on Munson Healthcare

Moody’s Investors Service affirmed the “A1” rating on Traverse City, Mich.-based Munson Healthcare’s revenue bonds issued by the Grand Traverse County Hospital Authority, affecting $155 million of debt.

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The affirmation is a result of several factors, including the health system’s favorable revenue growth, stable operating performance, healthy leverage metrics and solid market position. Moody’s also acknowledged Munson Healthcare’s high reliance on government payers and below average revenue base as credit rating risks.

The outlook is stable, reflecting Moody’s expectation that the health system will see stable operating margins and improved liquidity metrics to navigate the heavy reliance on federal reimbursements. 

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