Moody's Investors Service affirmed its "A3" rating on Gainsville, Fla.-based Shands Teaching Hospital and Clinics' outstanding debt, affecting $610 million of debt.
The affirmation is a result of several factors, including Shands' improving operating performance, strong affiliation with the University of Florida and increasing patient volumes. Moody's also acknowledged Shands' high leverage position and below average debt service coverage.
The outlook was revised to positive from stable, reflecting Moody's expectation that the system will maintain its healthy financial performance, successfully open and manage its new tower and refine its long-term capital plans.