Moody's Investors Service affirmed its "Baa3" rating on Gaithersburg, Md.-based Adventist Healthcare's bonds, affecting $327 million of debt.
The affirmation is a result of several factors, including the health system's favorable operating margin, sizable presence in its market and expectations that Maryland's Global Budget Revenue program — which covers a majority of fixed costs associated with large scale capital projects — will provide a predictable revenue stream. Moody's also acknowledged Adventist Healthcare's high leverage and heavy debt burden.
The outlook is stable, reflecting Moody's expectation that the state's GBR program will help the health system achieve a stable financial performance compensating for a heavy debt burden and thin financial cushion.