Moody's Investors Service has affirmed the "A2" ratings assigned to Bend, Ore.-based St. Charles Health System's revenue bonds, affecting approximately $148 million of revenue bonds issued by the Deschutes County Hospital Facilities Authority.
The rating affirmation was based on a number of factors, including St. Charles Health System's "stable balance sheet despite the increase in debt, its return to good operating performance measures in fiscal year 2014 after a decline in fiscal year 2013, and the consolidation of its market position in the Bend region," according to Moody's. The system saw its unrestricted cash and investments increase to $242.7 million in fiscal year 2014, which also supported the rating affirmation.
The system faces some challenges, which were considered for the rating affirmation, such as experiencing increased debt in fiscal year 2014 and competition for outpatient services from a large, local physician group.
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