Moody's Investors Service has assigned an "A2" rating to the $315 million of series 2014A fixed rate revenue bonds issued on behalf of Scottsdale (Ariz.) Healthcare Hospitals, formerly Scottsdale Healthcare Corp.
The rating assignment was based on the combined credit strength of SHH and Phoenix-based John C. Lincoln Health Network, which affiliated to form Scottsdale Lincoln Health Network last year.
Various factors supported the rating assignment, including SHH's strong market position, as it has the leading market position in Scottsdale. When combinded with JCL's dominant market position in northeast Phoenix, the two system's have a 36.5 percent market share, which is the leading share in their primary service area.
Challenges, such as SLHN's "relatively high" debt and a high budget for capital spending — about $420 million over the next two years — were also considered for the rating.
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