Moody's assigns 'A2' rating to University Hospitals Health System's bonds

Moody's Investors Service has assigned an "A2" rating to Cleveland-based University Hospitals Health System's proposed series 2016A fixed rate bonds, affecting $825 million of outstanding debt.

The rating affirmation is based on several factors, including UH's position as a large system in the Cleveland area and its consistent operating margins.

These strengths are offset by several challenges, including balance sheet leverage and the presence of a prominent competitor.

The outlook is stable, reflecting Moody's expectation that UH will continue to generate adequate margins.

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