The rating assignment is based on a number of factors, including DUHS’ size and scope of operations, strong relationship with Durham, N.C.-based DukeUniversity and favorable operating margins.
The outlook is stable, reflecting Moody’s Investors Service’s expectation that while DUHS may not sustain well above operating margins achieved in fiscal year 2015 and interim fiscal year 2016, the system will continue to generate sound operating cash flow margins over time.
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