Moody's Investors Service has assigned an "A3" rating to $127.9 million of Annapolis, Md.-based Anne Arundel Health System's series 2014 bonds.
The rating assignment was supported by a number of factors, including the health system's healthy operating margins. AAHS posted a 2.4 percent operating margin and an 11.5 percent operating cash-flow margin in fiscal year 2014.
The rating assignment was also supported by AAHS' dominant market share. The system has a 69.5 percent market share in its primary service area.
The system also faces some challenges, which were considered for the rating assignment, such as being highly leveraged. In FY 2014, AAHS reported an unfavorable debt to cash flow ratio.
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