Moody's Investors Service has assigned an "A3" rating to Boston-based CareGroup's proposed $214 million of 2015 H-1 bonds and $50.8 million of 2015 H-2 bonds. Moody's has also affirmed its "A3" rating on approximately $470 million of outstanding debt.
The rating assignment and affirmation were based on several factors, including CareGroup's large size and expansive presence in eastern Massachusetts.
Key credit challenges include modest operating performance and likelihood of increased capital spending in coming years.
The outlook is stable, reflecting Moody's expectation that CareGroup will continue to generate modest operating surpluses and improve performance over weaker 2015 levels.