Moody's Investors Service has assigned an "Aa2/VMIG 1" rating to Norfolk, Va.-based Sentara Healthcare's proposed series 2016A and 2016B tax-exempt variable rate demand bonds.
The rating assignment is based on several factors, including Sentara's leading market position, strong patient demand and history of solid operating margins.
These strengths are offset by Sentara's growth initiatives, which keep capital spending high.
The outlook is stable, reflecting Moody's expectations that margins will be sustained and revenue diversification strategies will be absorbed.