Moody's Investors Service assigned its "Aa3" rating to San Diego-based Sharp Healthcare's proposed $150 million series 2017A, $74.5 million series 2017B and $74.6 million series 2017C.
Concurrently, Moody's affirmed its "Aa3" rating on Sharp Healthcare's parity debt, affecting $509 million of debt.
The assignment and affirmation is a result of several factors, including the health system's strong balance sheet metrics, growing market share, wide array of clinical offerings and stable strategic position. Moody's also acknowledged the health system's challenging payer mix, weaker operating performance in fiscal year 2017, upcoming capital spending and highly competitive market.
The outlook is stable, reflecting Moody's expectation that Sharp Healthcare will maintain its favorable balance sheet despite the upcoming period of high capital spending.