Moody's Investors Service has assigned an "Aa3" rating to Mishawaka, Ind.-based Franciscan Alliance's proposed series 2016A and series 2016B bonds, affecting $180.7 million and $87.7 million, respectively.
Moody's also affirmed the "Aa3" rating on Franciscan's $938 million of debt.
The rating assignment is based on a number of factors, including Franciscan's strong rebound of operating metrics, which has translated into balance sheet strengthening and well-positioned individual hospitals.
Offsetting these strengths are Franciscan's large capital spending and competition in most markets.
The outlook is stable, assuming operating and balance sheet measures will remain durable.