Moody's Investors Service has affirmed the "Aa2" ratings assigned to Coral Gables-based Baptist Health South Florida's bonds and taxable notes as well as the "P-1" rating assigned to BHSF's Taxable Commercial Paper Program.
The rating action affects approximately $977 million of rated debt outstanding.
The affirmation of the "Aa2" ratings was supported by a number of factors, including BHSF's leading market share position in the Miami metropolitan area, multi-year track-record of double-digit operating cash flow margins, strong liquidity and debt coverage ratios, and very modest liquidity risk, according to Moody's.
BHSF also faces challenges, which were considered for the affirmation of the "Aa2" ratings, such as an increasing capital spend, modestly high leverage and reliance on cash flows primarily from one fragmented and competitive metropolitan area.
The "P-1" rating affirmation on the BHSF's Taxable Commercial Paper Program is supported by Moody's analysis of the system's strong liquidity position and adequacy of the system's treasury management structure to meet commercial paper maturities.
The system's outlook is stable, which reflects Moody's expectation that BHSF "will maintain margins that can support its high debt level and at least maintain balance sheet ratios."
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