Moody's Investors Service assigned its "Aa3" rating to Hollywood, Fla.-based South Broward Hospital District's proposed $100 million series 2018 hospital revenue bonds. The district does business as Memorial Healthcare System.
Concurrently, Moody's affirmed its "Aa3" rating on the health system's outstanding debt, affecting $580 million.
The assignment and affirmation are based on several factors, including the health system's dominant market position, improving operating margins, manageable leverage metrics and robust debt coverage. Moody's unfavorably viewed the health system's unfavorable payer mix and upcoming period of high capital spending.
The outlook is positive, reflecting Moody's expectation that the health system will maintain its strong market position to ensure its operating margins grow.