Moody's affirms Riverview Hospital's 'Baa2' rating

Moody's Investors Service has affirmed the "Baa2" long-term rating assigned to Noblesville, Ind.-based Riverview Hospital's bonds.

The rating affirmation was based on a number of factors including the hospital's stabilized operating performance, strong liquidity growth, strong market share, and low debt load.

Riverview has a market share of approximately 40 percent in its primary service area, and its  market share has remained consistent over the last several years.

The hospital had improved operating performance in fiscal year 2013, with an operating cash flow margin of 8.4 percent, compared to 7.7 percent in 2012. In addition, Riverview's balance sheet is strong, with unrestricted liquidity of $99 million as of Dec. 31, 2013.

The hospital also faces some challenges, such as experiencing a trend of volume declines, with inpatient admissions being down 18 percent in fiscal year 2013, compared to fiscal year 2010.

More articles on hospital credit ratings:

Fitch assigns 'AA-' rating to UPMC bonds, outlook negative 
S&P: Nonprofit children's hospitals likely to stay stable short-term 
Fitch assigns 'BBB+' rating to Major Hospital 

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