Moody’s affirms ‘Aa3’ on UW Health

Moody’s Investors Service affirmed its “Aa3” rating on Madison, Wis.-based University of Wisconsin Hospitals and Clinics, affecting approximately $290 million of rated debt. The health system does business as UW-Health.

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The affirmation is a result of several factors, including the health system’s reputation as a leading academic medical center in Wisconsin, strong balance sheet metrics and modest leverage. Moody’s also acknowledged that UW-Health will experience thinner near-term margins as it transitions to an integrative healthcare delivery system.

The outlook is stable, reflecting Moody’s expectation that the health system will rebuild its margins back to historical levels throughout fiscal year 2018 and fiscal year 2019.

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