Moody's Investors Service has assigned an "A3" long-term rating to $39.9 million of series 2014B fixed rate revenue bonds issued on behalf of Central Florida Health Alliance in
Moody's has also upgraded the long-term ratings on $76 million of CFHA's outstanding revenue bonds from "Baa1" to "A3."
The rating assignment and upgrade were supported by a number of factors, including CFHA's leading market share. The system has a 70 percent market share, which is the leading share in its primary service area.
The rating assignment and upgrade were also supported by CFHA's improved operating performance. The system's operating cash flow margins have been in double digits for the last four years, with a 13 percent operating cash flow margin in fiscal year 2014.
CFHA also faces a number of challenges, which were considered for the rating assignment and upgrade, such as being heavily reliant on Medicare, which represented 73 percent of its gross patient revenue in FY 2014.
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