Moody’s affirms SCL Health’s ‘Aa3’ rating

Moody’s Investors Service affirmed its “Aa3” long-term rating on Sisters of Charity of Leavenworth (Kan.) Health System, which does business as SCL Health. The rating affects about $1.2 billion of debt.

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The affirmation is a result of several factors, including SCL Health’s strong operating performance, improving balance sheet metrics, limited capital spending, good market position and favorable service area. Moody’s unfavorably viewed SCL Health’s high leverage, material competition and challenging payer mix.

The outlook is stable, reflecting the health system’s strong operating margins, which will allow the health system to meet debt payment requirements.

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