Moody's Investors Service has assigned an "A2" rating to Cleveland-based University Hospitals Health System's proposed series 2015A, 2015B and 2015C bonds, affecting approximately $1 billion of rated debt.
Moody's has also affirmed the "A2" rating on the system's outstanding bonds.
The rating assignment is based on several factors, including the system's position as a large system in the Cleveland area as well as its manageable capital spending plans.
Challenges to the system include balance sheet and operating leverage and the presence of a large and prominent competitor.
The rating outlook is stable, reflecting expected continued adequate margins and no major increase in leverage.