The rating assignments were supported by a number of factors, including UH’s good operating margins and moderate capital spending. Over the last several years, the system’s operating margin has averaged 2 percent to 4 percent, which is adequate for the rating level. In addition, UH’s capital spending plans are moderate.
The rating affirmations were also supported by UH’s position as a large system in the greater Cleveland area, with a 28 percent market share in its primary service area.
UH also faces some challenges, which were considered for the rating assignment, such as facing competition from The Cleveland Clinic Health System.
More articles on hospital credit ratings:
Moody’s affirms Carolinas HealthCare System’s ‘Aa3’ rating
Fitch affirms Frederick Memorial Hospital’s ‘BBB+’ rating
Fitch affirms Butler Health System’s ‘A-‘ rating
