Moody's Investors Service assigned its "A2" rating to Peoria, Ill.-based OSF Healthcare System's proposed $472 million series 2018 bonds. Concurrently, Moody's affirmed its "A2" rating on the health system's existing debt, affecting about $1.15 billion.
The assignment and affirmation are based on several factors, including the health system's strong market share, good volume trends and solid investments. Moody's unfavorably viewed the health system's sizable debt, strong competition and heavy reliance on its flagship facility in Peoria.
The outlook remains negative, reflecting Moody's concern that OSF may not be able to sustain margins to offset its high leverage.