Moody's Investors Service affirmed its "Baa1" rating on Tallahassee (Fla.) Memorial HealthCare, affecting approximately $352 million of rated debt.
The affirmation is based on several factors, including the health system's dominant market position, favorable patient volume trends, strong operating margins and healthy cash flow. Moody's also acknowledged TMH's above-average debt burden and ongoing expansion project.
The outlook is stable, reflecting Moody's expectation that TMH will maintain its favorable operating performance and adequate balance sheet metrics to offset the increased capital spending as the system completes the expansion project.