Here are three things to know about the rating action and the system’s outlook.
1. The “Aa2” rating assignment is supported by a number of factors, including OhioHealth’s track record of consistently strong operating margins, leading market position in a competitive area, high unrestricted investment position, manageable debt level and debt structure, and strong management team with a proven track record of meeting or exceeding budgets and responding to competition quickly and effectively, according to Moody’s.
2. The system’s primary challenge is operating in a very competitive market, where other well-financed providers continue to make major facilities investments to gain market share.
3. The system’s outlook is stable, which reflects Moody’s expectations “that OhioHealth will sustain operating cash flow margins within historical ranges, maintain liquidity and effectively execute strategies to at least preserve the system’s leading market position.”
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