The rating is based on a number of factors, including SJHS’ large scale, essential role as a safety-net provider and strong operating cash flow generation. Offsetting these strengths are SJHS’ location in a competitive service area and its heavy reliance on governmental payers.
The outlook is stable, reflecting Moody’s Investors Service’s expectation that SJHS will produce operating cash flow margins around 10 percent.
Moody’s also affirmed the “Baa3” rating on SJHS’ outstanding revenue bonds.
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