The rating affirmation was attributable to a number of factors, including the system’s status as a large, single state health system and diversification of cash flow across three key markets. The system’s adequate performance given its good liquidity position and manageable debt load also supported the rating affirmation.
The system also faces some challenges, which were considered for the rating action, such as experiencing “large operating losses in one of the three markets suppressing overall operating performance, competitive pressures in all of its markets and unfavorably low monthly liquidity especially as the system embarks on a system wide IT conversion,” according to Moody’s.
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