Moody's assigns 'A2' rating to Renown Health's bonds

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Moody's Investors Service has assigned an "A2" rating to Reno, Nev.-based Renown Health's proposed $135 million series 2016A fixed rate hospital revenue refunding bonds, and affirmed the "A2" ratings on the system's parity debt, affecting approximately $510 million of debt outstanding.

The rating affirmation was based on a number of factors, including Renown's third year of strong performance, and the continued improvement of balance sheet measures.

Moody's said Renown's size, improved market share, strong clinical offerings and dominant competitive position also support the "A2" rating.

Renown faces some challenges, though, such as operating in a highly competitive operating environment, high overall leverage, and cyclical economic challenges in the region.

The system's outlook is stable, which Moody's said "reflects a fundamentally strong market position, and the expectation that Renown will continue to produce stable and solid operating margins."

 

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