Moody's Investors Service affirmed its "Aa3" rating on Asheville, N.C.-based Mission Health System, affecting $470 million of rated debt.
The affirmation is a result of several factors, including the health system's strong market position, recently resolved contract termination with Blue Cross Blue Shield and historically favorable financial profile. Moody's also acknowledged the health system's anticipated operating margin erosion in fiscal year 2018, due to its brief out-of-network period with BCBS.
The outlook is stable, reflecting Moody's expectation that Mission Health will meet its fiscal budget and maintain healthy liquidity metrics despite the early erosion in its operating margin.