The rating assignment was supported by a number of factors, including the health system’s healthy operating margins. AAHS posted a 2.4 percent operating margin and an 11.5 percent operating cash-flow margin in fiscal year 2014.
The rating assignment was also supported by AAHS’ dominant market share. The system has a 69.5 percent market share in its primary service area.
The system also faces some challenges, which were considered for the rating assignment, such as being highly leveraged. In FY 2014, AAHS reported an unfavorable debt to cash flow ratio.
More articles on hospital credit ratings:
Moody’s affirms Jackson-Madison County General Hospital’s ‘A1’ rating
Moody’s assigns ‘Aa3’ rating to WellSpan Health’s bond, outlook stable
Moody’s upgrades St. Joseph’s Healthcare System’s rating to ‘Baa3’
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