Moody's Investors Service affirmed its "Baa2" rating on Chattanooga, Tenn.-based Erlanger Health System's outstanding rated debt, affecting $150 million of debt.
The affirmation is a result of several factors, including Erlanger's strong revenue growth, improved market share and solid investments in new facilities and clinical programs. Moody's also acknowledged the health system's recent IT conversion that resulted in higher expenses in the first half of fiscal year 2018.
The outlook is positive, reflecting Moody's expectation that Erlanger will see further revenue growth as the added costs of the IT installation decline.