Moody's Investors Service has assigned an "Aa3" rating to Indianapolis-based Indiana University Health's series 2014A fixed rate bonds.
The rating assignment was supported by a number of factors, including IUH's strong margins and the system's significant growth in unrestricted investment position. As of June 30, IUH had 261 days cash on hand.
The rating was also supported by the health system's strong market position. IUH has a leading market share in its primary service area, with an estimated 28 percent market share in 2013.
IUH also faces some challenges, which were considered for the rating assignment, such as large declines in patient volume in 2013 and through the first six months of fiscal year 2014, resulting in flat revenue in both periods.
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