Moody's upgrades Catholic Health System's outlook to positive

Moody's Investors Service has assigned a "Baa1" rating to Buffalo, N.Y.-based Catholic Health System's proposed $96 million of series 2015 fixed rate revenue bonds and revised the system's outlook to positive from stable.

The rating assignment was based on a number of factors, including CHS' strong and growing market position.

The system also faces some challenges, which were considered for the rating assignment, such as having a large pension obligation.

The outlook revision was based on the system's improved operating margins and Moody's expectation that the system will experience further growth in absolute liquidity given manageable capital spending and likely greater returns from planned asset reallocation.

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