Moody's Investors Service has affirmed the "Aa3" rating assigned to $618 million of outstanding bonds issued on behalf of Minneapolis-based Allina Health System.
The rating affirmation was supported by a number of factors, including Allina Health's growth in unrestricted cash and investments in fiscal year 2013 and maintenance of liquidity in fiscal year 2014. At the end of FY 2013, Allina Health had 182 days cash on hand, up from 175 days at the end 2012.
The rating affirmation was also supported by the health system's leading market position, with a 32.7 percent market share in its service area.
Allina Health also faces some challenges, which were considered for the rating affirmation, such as inpatient volume declines and being located in a highly competitive market.
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