Moody's Investors Service has affirmed the "Aa3" long-term rating assigned to $80.8 million of outstanding revenue certificates issued on behalf of Macon, Ga.-based Navicent Health, and revised the system's outlook to stable from negative.
Here are three things to know about the rating action and outlook.
1. The rating affirmation was based on a number of factors, including Navicent's position as a regional tertiary referral center and largest acute-care provider in the broad service area with a leading market position, improved operating results in fiscal year 2014, very strong and growing liquidity and above average debt service coverage, according to Moody's. Additionally, the system's management team "continues to focus on implementing a strategic plan aimed at positioning the system for the future growth," Moody's said.
2. The outlook revision is supported by Navicent's materially improved operating performance in fiscal year 2014.
3. Moody's expects the system's improved financial results to be sustained "at a level appropriate compared to rating category peers given management's continued performance improvement strategies."
More articles on healthcare finance:
King v. Burwell decision would cause most Americans to switch healthcare providers
Moody's affirms Children's Healthcare of Atlanta's bond rating: 4 things to know
Considerations for REIT or MLP formation by healthcare not-for-profit organizations