Here are four things to know about the rating action and the hospital’s outlook.
1. The rating action affects approximately $88.6 million of debt.
2. The rating affirmation was supported by a number of factors, including Cabell’s strengthening market share, position as a teaching hospital and provider of higher acuity services across a broad service area, better performance in interim fiscal year 2015, favorable balance sheet metrics and healthy debt service coverage metrics, according to Moody’s.
3. Cabell also faces challenges, which were considered for the rating affirmation, such as a history of inconsistent financial performance, heavy use of demand debt and high Medicaid exposure.
4. The hospital’s outlook is stable, which reflects Moody’s expectation “that Cabell will continue to generate profitable operating margins and sustain adequate debt coverage and good liquidity ratios.”
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