Moody’s revises University Health’s outlook to stable

Moody’s Investors Service has affirmed Augusta, Ga.-based University Health’s “A1” underlying rating on $142.5 million of outstanding revenue certificates and revised the system’s outlook to stable from negative.

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The outlook upgrade was based on various factors, including the system returning to its historical operating performance over the last year and a half after margins were suppressed by several strategic initiatives in fiscal years 2012 and 2013.

The rating affirmation was supported by University Health’s strong and growing liquidity position, among other factors.

The system also faces some challenges, which were considered for the rating affirmation, such as operating in a highly competitive service area.

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