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

Moody’s Investors Service assigned its “Aa3” rating to Sacramento, Calif.-based Sutter Health’s proposed $440 million series 2017A refunding revenue bonds to be issued by California Health Facilities Financing Authority.

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Additionally, Moody’s affirmed the “Aa3” rating on Sutter Health’s outstanding parity debt.

The assignment and affirmation is a result of several factors, including Sutter Health’s stable cash flow, powerful presence in northern California, steady asset-liability structure and well funded pension plan.

The outlook on the ratings is stable reflecting Moody’s expectation that Sutter’s operating margins and balance sheet metrics will improve despite the $3.2 billion capital plan over the next three years. 

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