Raleigh, N.C.-based WakeMed’s A2 issuer and revenue ratings are under review for upgrade by Moody’s following the Sept. 21 approval of a proposed combination with Atrium Health by the Wake County Board of Commissioners.
Previously, WakeMed’s outlook was stable, with the system holding about $666 million of debt outstanding at the end of fiscal year 2025, according to a Sept. 25 Moody’s report.
Moody’s said the review will focus primarily on the likelihood that the transaction is completed, with receipt of regulatory approvals. County commissioners approved amendments to WakeMed’s articles of incorporation and the agreement governing the county’s 1997 transfer of hospital assets to the system.
Once finalized, WakeMed would convert to a single-member nonprofit structure with Charlotte, N.C.-based Atrium Health as its sole member. Atrium Health is part of Advocate Health, which Moody’s rates Aa2 with a stable outlook.
The ratings agency said the transaction would likely strengthen WakeMed’s credit profile, citing Atrium Health’s scale and planned investments in facilities, technology, workforce capacity and patient access, along with a new Wake County Whole Health Program.
North Carolina Treasurer Brad Briner has called for closer review of the combination.
WakeMed is a 973-bed system with three full-service hospitals, eight emergency departments, a children’s hospital, a rehabilitation hospital, more than 160 physician offices and Wake County’s only level 1 trauma center.
