Moody’s assigns ‘Aa3’ rating to Sutter Health’s bonds

Moody’s Investors Service has assigned an “Aa3” rating to Sacramento, Calif.-based Sutter Health’s proposed series 2016B and series 2016C revenue bonds, which are expected to have a par value of $744 million and $100 million, respectively.

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The rating assignment is based on several factors, including Sutter’s strong presence in northern California, large size and history of stable cash flow production.

Offsetting these strengths are Sutter’s relatively high leverage and recently modest operating performance.

The outlook is stable, under the assumption that Sutter’s operating and balance sheet measures will continue to improve over the next few years.

More articles on healthcare finance:
Fitch assigns ‘A-‘ rating to Monroe Clinic’s bonds
Moody’s affirms Valley Health System’s ‘A1’ rating
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