Moody's Investors Service has assigned an "Aa2" rating to $62.7 million of series 2014A bonds and $50 million of series 2014B bonds to be issued to Danville, Pa.-based Geisinger Health System.
The rating assignment was supported by a number of factors, including the health system's large size and scope of operations, strong brand and national reputation, and adequate balance sheet reserves.
Geisinger's leverage measures based on fiscal year 2014 are healthy, with 27 percent debt-to-operating revenue. In addition, the health system has very favorable balance sheet indicators as of fiscal year 2014, with more than $2.7 billion of unrestricted liquidity.
The health system also faces some challenges, which were considered for the rating assignment, such as higher than average debt structure risks.
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