Moody's assigns 'A3' ratings to St. Luke's University Health Network's bonds

Moody's Investors Service has assigned "A3" ratings to $55 million of Bethlehem, Pa.-based St. Luke's University Health Network's series 2015A fixed rate bonds and $20 million of series 2015B floating rate bonds.

The rating assignment was based on a number of factors, such as the system's healthy and growing absolute cash position and solid operating profile. In fiscal year 2014, SLUHN had a 2.2 percent operating margin and a 10.7 percent operating cash flow margin.

The system also faces some challenges, which were considered for the rating assignment, including having a sizable amount of indirect debt.

SLUHN's outlook is currently stable, which reflects Moody's expectation that it "will maintain margins that can support its higher debt level and at least maintain current balance sheet ratios."

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