Moody's Investors Service has affirmed the "A2" bond rating assigned to Thomasville, Ga.-based Archbold Medical Center.
The rating action affects approximately $84 million of series 2010 fixed rate revenue bonds.
Here are three things to know about the rating affirmation and the system's outlook.
1. The rating affirmation is supported by a number of factors, including AMC's distinctly leading market position over a broad service area, continued strong liquidity and debt coverage ratios, and track record of good and stable operating margins, according to Moody's.
2. The system also faces some challenges, which were considered for the rating assignment, such as being small for the rating category, having a much higher than average exposure to Medicare, and somewhat challenging demographic characteristics in its service area.
3. The system's outlook is stable, which reflects Moody's expectation "that while operating results may moderate over time given AMC's high reliance on Medicare, margins will remain adequate at the 'A2' rating level." Moody's also expects AMC to sustain strong liquidity and debt coverage ratios.
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