In addition, Moody’s affirmed the “Aa2,” “Aa2/VMIG 1” and “P-1” ratings on Cleveland Clinic’s variable rate bonds, affecting $3 billion of debt.
The “Aa2” assignment is a result of several factors, including Cleveland Clinic’s strong liquidity and cash flow, as well as proper execution of large capital projects and ability to fundraise.
The short-term rating is a result of the health system’s strong liquidity metrics to support and ensure timely payments on maturing commercial papers and unassigned bonds.
The outlook is stable, reflecting Moody’s expectation that Cleveland Clinic will utilize multiple strategies to navigate debt risk and maintain improved operating margins to support the higher debt level.
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