Moody's Investors Service affirmed its "A1" rating on Fishersville, Va.-based Augusta Health Care's revenue bonds, affecting $14.8 million of debt.
The affirmation is a result of several factors, including AHC's dominant market position, healthy operating performance, robust balance sheet metrics and excellent debt coverage. Moody's also acknowledged AHC's modest size and recent contract termination with Anthem, which may affect operating performance and volume.
The outlook is stable, reflecting AHC's limited capital spending needs, robust balance sheet and low debt burden. In addition, Moody expects AHC to resolve its contract dispute with Anthem.