Moody’s revises Adena Health System’s outlook to stable

Moody’s Investors Service has affirmed the “A3” bond rating assigned to Chillicothe, Ohio-based Adena Health System’s outstanding bonds and revised its outlook to stable from negative.

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The outlook change was supported by the health system’s improved margins and investment position growth. Adena maintained solid revenue growth and improved operating margins in fiscal year 2013 and through eight months of FY 2014.

The rating affirmation was based on a number of factors, including the health system’s dominant market position. Adena has little hospital and physician competition, as it is the only acute-care provider in Ross County, Ohio.

The system also faces some challenges, which were considered for the outlook change and the rating affirmation, such as experiencing a decline in inpatient volume.

More articles on hospital credit ratings:

6 recent hospital rating and outlook changes, affirmations
Moody’s assigns ‘Baa2’ rating to Cooper Health System’s bonds 
Fitch upgrades South Nassau Communities Hospital’s rating to ‘A-‘ 

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