Moody’s affirms ‘Aa3’ rating on Methodist Health System

Moody’s Investors Service affirmed its “Aa3” rating on Dallas-based Methodist Health System, affecting about $348 million of outstanding debt.

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The affirmation is a result of several factors, including the health system’s consistent operating results, favorable liquidity position, growing market population and solid leverage metrics. Moody’s unfavorably viewed the operating challenges at Methodist Southlake (Texas) Hospital, which negatively affects the health system’s operating margins.

The outlook is stable, reflecting Moody’s expectation that the health system will not only experience volume growth as its market population expands but also will maintain healthy liquidity metrics and a low debt burden.

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