Moody’s assigns ‘A3’ rating to to CareGroup’s bonds

Moody’s Investors Service has assigned an “A3” rating to Boston-based CareGroup’s proposed $214 million of 2015 H-1 bonds and $50.8 million of 2015 H-2 bonds. Moody’s has also affirmed its “A3” rating on approximately $470 million of outstanding debt.

Advertisement

The rating assignment and affirmation were based on several factors, including CareGroup’s large size and expansive presence in eastern Massachusetts.

Key credit challenges include modest operating performance and likelihood of increased capital spending in coming years.

The outlook is stable, reflecting Moody’s expectation that CareGroup will continue to generate modest operating surpluses and improve performance over weaker 2015 levels.

More articles on finance:
38 CHS hospitals spin off as new company: 7 things to know
Private equity investment in healthcare: 15 healthcare investment niches — A review of key sectors for 2015
The Puerto Rican healthcare crisis: 10 things to know

At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.

Download Whitepaper

The cost-saving opportunity most health systems overlook

Many hospitals and health systems scrutinize staffing, service lines, and payer contracts for savings. Fewer look at one of their largest assets: real estate.…

Advertisement

Next Up in Financial Management

Advertisement

Comments are closed.