Moody's Investors Service has affirmed the "A2" rating assigned to Arlington Heights, Ill.-based Alexian Brothers Health System, which affects approximately $154 million of debt issued through the Illinois Finance Authority.
The rating affirmation was supported by a number of factors, including ABHS' good operating results. The health system had an 11.8 percent operating cash flow margin for fiscal year 2014.
The rating affirmation was also supported by ABHS' strong market share, as the health system maintains the leading market share in its primary service area.
The health system also faces some challenges, which were considered in the rating affirmation, such as having eight competing hospitals in an approximately 16-mile radius.
The affirmation of the health system's stable outlook reflects the expectation that ABHS will sustain good operating margins. The outlook affirmation was also based on the health system maintaining its relationship with St. Louis-based Ascension Health, which it joined in January 2012.
More articles on hospital credit ratings:
Moody's affirms New Hanover Regional Medical Center's 'A1' rating
Moody's affirms St. John Health System's 'A2' rating
5 recent hospital rating and outlook changes, affirmations