Moody’s affirms Mission Health System’s bond rating

Moody’s Investors Service has affirmed the “Aa3” and “Aa3/VMIG 1” rating assigned to approximately $500.2 million of Asheville, N.C.-based Mission Health System’s outstanding debt issued through the North Carolina Medical Care Commission.

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The rating affirmation was supported by a number of factors, including the system’s well managed liquid investment portfolio. As of the end of fiscal year 2014, the system had $960.7 million in unrestricted cash and investments or 274.7 days cash on hand.

The rating affirmation was also supported by Mission Health’s dominant market position, with a 93 percent market share in its primary service area.

The system also faces some challenges, which were considered for the rating affirmation, such as reporting a decline in operating performance over the last several years.

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