Moody’s affirms ‘A3’ rating on St. Luke’s Health System’s bonds

Moody’s Investors Service affirmed the “A3” rating on Boise, Idaho-based St. Luke’s Health System’s bonds, affecting $531 million of debt.

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The affirmation is a result of several factors, including St. Luke’s favorable market position, historically solid operational management, wide variety of clinical services and advantageous economy in Idaho. Moody’s also acknowledged the health system’s recent financial challenges, weak liquidity metrics and high leverage.

The outlook is negative, which is due to the health system’s weakened financial performance driven by its risk-based contracts, according to Moody’s.

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