Moody's Investors Service has assigned "Aa2" and "P-1" ratings to Cleveland Clinic Health Systems' series 2014 taxable bonds and series 2014A commercial paper notes.
The long-term rating is based on CCHS's reputation and leading market position in northeast Ohio, good operating margins and strong unrestricted investment position. The health system has had consistently strong operating margins and cash flow margins.
The health system's increase in debt with its current financing is offset by growth in unrestricted investment and strategies to de-risk the pension plan. As of June 30, CCHS had 339 days cash on hand.
The commercial paper rating is based on the adequacy of liquid investment to support maturing commercial paper.
More articles on hospital credit ratings:
Fitch affirms 'BBB-' rating for Columbia Memorial Hospital, outlook stable
Moody's revises OSF Healthcare System's outlook to stable
Moody's affirms Ochsner Clinic Foundations' 'Baa1' rating