Moody's Investors Service has assigned "A1" bond ratings to
The assignment and affirmation of the A1 rating reflects VHS's leading market position and strong balance sheet. The health system faces little competition for acute care services in its primary service area. VHS reported improved operating performance through the first six months of 2014, with an operating cash flow margin of 12.7 percent.
The negative outlook rating is based on two years of performance that failed to support additional debt incurred by the health system. If VHS's debt coverage ratios do not improve in 2014, the health system would likely receive a rating downgrade.
More articles on hospital credit ratings:
7 recent hospital rating and outlook changes, affirmations
Moody's revises Texas Health Resources' outlook to positive
Moody's downgrades St. Luke's revenue bonds to 'A3', outlook stable