Moody's Investors Service has assigned an "A2" rating to Cleveland-based University Hospitals' series 2014A fixed rate bonds and series 2014B variable rate remarketing obligations.
The rating assignments were supported by a number of factors, including UH's good operating margins and moderate capital spending. Over the last several years, the system's operating margin has averaged 2 percent to 4 percent, which is adequate for the rating level. In addition, UH's capital spending plans are moderate.
The rating affirmations were also supported by UH's position as a large system in the greater
UH also faces some challenges, which were considered for the rating assignment, such as facing competition from The Cleveland Clinic Health System.
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