Moody's Investors Service affirmed its "A1" rating on Houston-based Memorial Hermann Health System, affecting $1.1 billion of debt.
The affirmation is a result of several factors, including the health system's growing market position, strong rebound in operating performance and liquidity improvement. Moody's unfavorably viewed the health system's unfavorable payer mix and high balance sheet metrics.
On Oct. 1, Memorial Hermann and Houston-based Baylor Scott & White Health announced their intent to merge. This rating doesn't incorporate the planned merger. Moody's will re-evaluate the rating upon closing of that transaction.
The outlook is stable, reflecting Moody's expectation that the health system's operating performance will remain strong.
More articles on healthcare finance:
Hospital uncompensated care surges 14% to $1.1B in Wisconsin
Mayo Clinic gets $10M donation to support 5 initiatives
12 recent hospital, health system outlook and credit rating actions