Moody’s assigns ‘Aa2’ rating to Geisinger Health System’s bonds

Moody’s Investors Service assigned an “Aa2” rating to Danville, Pa.-based Geisinger Health System’s series 2017A fixed-rate bonds and series 2017B index floating-rate bonds.

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The ratings assignment is based on a number of factors, including the health system’s large size, market position and exceptional clinical and research reputation.

The outlook is negative, reflecting Moody’s Investors Service’s expectation the health system will face financial and strategic challenges, including material operating losses related to its health plan’s exchange product and weak consolidated financial performance through fiscal year 2017 relative to its peer group medians.

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