Moody's Investors Service affirmed its "Baa2" rating on the $95 million series 2010 bonds of Madison, Ind.-based King's Daughters' Health.
The affirmation is a result of several factors, including the health system's leading market position, limited competition and its financial performance, which supports capital needs. Moody's negatively viewed the uncertainty with Indiana's disproportionate share payments and the health system's large debt load.
The outlook is stable, reflecting Moody's expectation that the health system's liquidity will continue to grow. thanks to its favorable cash flow margin.