The “A1” rating is supported by many factors, including the hospital’s leading market share, array of clinical offerings and history of operating margins that have translated into increased cash flow. Moody’s expects Phoenix Children’s Hospital’s operating results will remain strong though its limitations include a high debt load, a difficult ownership structure and a regional economy that has experienced challenges in the past.
The outlook is stable, reflecting Moody’s view that the hospital’s balance sheet measures will strengthen over time, thanks to a management team that has a track record of responding well to challenges.
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