Moody's Investors Service assigned its "A1" rating to Madera, Calif.-based Valley Children's Healthcare's proposed $202.5 million series 2018A bonds.
At the same time, Moody's affirmed its "A1" rating on the health system's outstanding bonds.
The affirmation and assignment are based on several factors, including Valley Children's solid debt coverage, robust liquidity position, dominant market position and good physician alignment. Moody's also acknowledged Valley Children's high exposure to Medicaid as a payer and increasing competition.
The outlook is stable, reflecting Moody's expectation that the health system will maintain its healthy leverage position.