In addition, Moody’s affirmed the “Ba1” rating on Temple University Health System’s outstanding bonds, affecting $500 million of debt.
The assignment and affirmation are a result of several factors, including TUHS’ large size, clinical variation and affiliation with Philadelphia-based Temple University. Moody’s also acknowledged the health system’s weaker operating performance in fiscal year 2017, high expenditures related to EHR implementation and limited unrestricted reserves.
The outlook is stable, reflecting Moody’s expectation that TUHS will restore operating margins after its EHR implementation and maintain absolute cash balances.
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