Moody's Investors Service assigned its "Aa2" rating to St. Louis-based BJC Health System's remarketed $75 million series 2017D bonds.
Concurrently, Moody's affirmed the "Aa2" rating on BJC Health's outstanding bonds.
The assignment and affirmation are a result of several factors, including BJC Health's prominent reputation as an academic medical center, solid cash levels and declining leverage. Moody's also acknowledged the health system's sizable indirect debt, complex debt structure, pressured operating margins and increasing operational costs.
The outlook is stable, reflecting Moody's expectation that BJC Health will return its margins to historical levels after operational headwinds settle.