Moody’s affirms ‘A3’ rating on Torrance Memorial Medical Center

Moody’s Investors Service affirmed its “A3” rating on Torrance (Calif.) Memorial Medical Center, affecting about $230 million of debt.

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The affirmation is a result of several factors, including Torrance Memorial’s solid market position, favorable service area, modest capital needs and effective fundraising efforts. In addition, Moody’s expects Torrance Memorial to benefit from its inclusion in the recently formed Los Angeles-based Cedars-Sinai Health System.

Moody’s negatively viewed the health system’s slim cash flow margins and light liquidity metrics.

The outlook is stable, reflecting Moody’s expectation that margins will improve from its membership in the Cedars-Sinai Health System, especially as tighter strategic alignment occurs.

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