Moody's Investors Service affirmed its "Aa3" long-term rating on San Diego-based Scripps Health, affecting $632 million of rated debt.
The affirmation is a result of several factors, including the health system's strong brand recognition, healthy market position, strong management team, and gradually improving liquidity and debt metrics. Moody's also acknowledged Scripps Health's weaker operating performance so far in fiscal year 2018, high capital spending plans and material competition in its broader service area.
The outlook is stable, reflecting Moody's expectation that Scripps Health will improve operating performance after a more challenged fiscal year 2018.