Moody’s upgraded the credit ratings of Advocate Aurora Health and Atrium Health to “Aa2” from “Aa3” and Wake Forest Baptist’s rating to “Aa3” from “A1.”
Together, the three comprise Charlotte-based Advocate Health, but their debts remain separately secured, Moody’s said in an Oct. 1 report. The ratings agency does, however, consider the linkages between them and the credit quality of the entire Advocate Health system in its analysis.
Moody’s said the upgrades reflect the strengthened financial profile of the Advocate Health system and its successful expansion strategies, which have augmented its member organizations.
“Governance is a key driver for the upgrades reflecting the view that management’s execution of growth and integration strategies have undergirded Advocate Health’s financial and operational success,” Moody’s said.
The “Aa2” ratings for Advocate Aurora — dually headquartered in Milwaukee and Downers Grove, Ill. — and Charlotte-based Atrium are supported by their significant scale, strong market share in major metro areas, and solid financial performance and liquidity.
Winston-Salem, N.C.-based Wake Forest Baptist’s “Aa3” rating reflects its solid market position, its status as an academic medical center, and its membership in Advocate Health.
The outlook for all three members is stable, Moody’s said.
