Moody's affirms New Hanover Regional Medical Center's 'A1' rating

Moody's Investors Service has affirmed the "A1" rating assigned to Wilmington, N.C.-based New Hanover Regional Medical Center, which affects approximately $300 million of outstanding debt.

The rating affirmation was supported by the hospital's dominant market share position, as New Hanover maintains a 90 percent market share in its primary service area.

The rating affirmation was also supported by the hospital's strong operating performance, and growing patient volumes. New Hanover has experienced strong patient volume growth, with 5.2 percent growth in admissions in fiscal year 2013. In addition, the hospital has generated stable margins over the last three years.

The hospital also faces some challenges, such as Medicare and Medicaid making up 63.3 percent of its gross revenues, which were considered for the rating affirmation.

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