Moody’s assigns ‘Aa1’ rating to Intermountain Healthcare’s bonds

Moody’s Investors Service assigned its “Aa1” rating to IHC Health Services’ series 2018 revenue bonds. IHC Health Services is the borrowing group of Salt Lake City-based Intermountain Healthcare.

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Concurrently, Moody’s affirmed its “Aa1” rating on Intermountain Healthcare’s $2 billion of outstanding debt.

The assignment and affirmation are a result of several factors, including the health system’s dominant market share, solid debt coverage and strong cash levels. In addition, Moody’s favorably viewed the health system’s completion of a multiyear EHR installation without major disruption.

The outlook was revised to stable from negative, reflecting Moody’s expectation that Intermountain will improve its operating performance as its management focuses on cost reduction and optimizes its new IT system.

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