Moody's Investors Service has affirmed the "A1" rating assigned to Sarasota County (Fla.) Public Hospital District's $200 million of outstanding bonds.
Here are three things to know about the rating affirmation and the hospital district's outlook.
1. The affirmation was based on a number of factors, including SCPHD's consistently strong financial performance, growth in unrestricted cash and investments and leading market position, according to Moody's. Additionally, historical reliance on ad valorem tax revenues for cash flow
has declined.
2. SCPHD also faces challenges, which were considered for the rating affirmation, such as a debt profile that remains leveraged for the rating category and high and growing exposure to Medicare.
3. The hospital district's outlook is stable, which reflects Moody's expectation "that SCPHD will maintain favorable financial performance in FY 2015 although likely at lower levels from FY 2014 performance."