Here are four things to know about the rating action and outlook revision.
1. The rating action affects $284 million of debt.
2. The rating affirmation was supported by a number of factors, including UC Health’s prominence as the Cincinnati region’s only academic medical center and expected moderate capital spending for the next several years, according to Moody’s.
3. The system also faces challenges, which were considered for the rating affirmation, such as operating in a competitive market, a high Medicaid and self-pay patient base requiring sizable supplemental funding and modest investment position.
4. The outlook revision reflects growth in UC Health’s absolute cash flow and investments, resulting in improved debt metrics for a moderate debt load and Moody’s expectation “that this trend will continue given strategies that are driving strong revenue growth.”
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