Moody's Investors Service upgraded Burlington-based University of Vermont Health Network to "A2" from "A3," affecting $315 million of rated debt.
The upgrade is a result of Moody's expectation that the health network will maintain a solid operating performance and favorable cash flow as it navigates an EMR and billing system installation. In addition, as the health network takes on additional risk-based contracts, Moody's expects the strong management team to keep margins at current levels.
The outlook was revised to stable, reflecting UVHN's ability to implement cost reduction measures as it sees some softening of margins over the next few years during the implementation phase.
UVHN operates the only academic medical center in Vermont and owns several community hospitals in Vermont and New York.