Moody’s assigns ‘A3’ rating to St. Luke’s University Health Network’s bonds

Moody’s Investors Service assigned its “A3” rating to Bethlehem, Pa.-based St. Luke’s University Health Network’s proposed $100 million series 2018C revenue bonds. The credit rating agency also affirmed its “A3” rating on the health system’s outstanding debt.

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The assignment and affirmation are a result of several factors, including the health system’s sheer size, strong market position and improving operating metrics. Moody’s unfavorably viewed the health system’s growing financial leverage associated with St. Luke’s growth strategy.

The outlook is stable, reflecting Moody’s expectation that St. Luke’s strong enterprise profile will help to maintain adequate cash flow and debt service coverage during the health system’s period of expansion.

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