Moody's revises Valley Health System's outlook: 4 things to know

Moody's Investors Service has assigned "A1" bond ratings to Winchester, Va.-based Valley Health System's proposed $117.8 million of series 2015 fixed rate
hospital revenue and refunding bonds, and revised the system's outlook to stable from negative.

Moody's analysis was based on the consolidated financial statements of Valley Health and its subsidiaries.

Here are four things to know about the rating assignment and the system's outlook revision.

1. The rating assignment is supported by the system's distinct leading market position in its broad nine-county primary service area in the demographically favorable northern Shenandoah Valley region of Virginia.

2. The rating assignment was also supported by Valley Health System's good liquidity

3. The system faces challenges, which were considered for the rating assignment, such as a high debt load coupled with a risky investment allocation.

4. The outlook revision was based on Valley Health System's return to historical operating performance in fiscal year 2014 and improved debt coverage
measures, according to Moody's.


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