Moody's Investors Service affirmed its "A1" rating on Gastonia, N.C.-based CaroMont Health, affecting $130 million of outstanding rated debt.
The affirmation is a result of CaroMont Health's double-digit cash flow margins, strong liquidity metrics, anticipated revenue growth, dominant market position and healthy debt service coverage. Offsetting these credit strengths are the health system's large pension contribution, highly competitive service area and modest size in comparison to similarly rated peers.
The outlook is stable, reflecting Moody's expectation that CaroMont Health will maintain its healthy operating performance, strong liquidity metrics and ample debt service coverage.