Moody's Investors Service has affirmed the "A3" ratings on Reno, Nev.-based Renown Health's revenue bonds and revised the system's outlook to positive from stable.
Renown's strengths, including its improved operating performance and dominant market share, supported the rating affirmation and outlook upgrade. Renown has a 63 percent market share in its primary service area.
The system also faces some challenges, which were considered for the rating and outlook actions, such as being highly leveraged and experiencing significant turnover among senior leadership.
Moody's revision of Renown's outlook is based on the expectation that "Renown will continue to produce strong coverage levels and grow its balance sheet in support of its high debt service obligations," according to Moody's.
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