Moody's Investors Service assigned its "Aa3" rating to Sacramento, Calif.-based Sutter Health's proposed $440 million series 2017A refunding revenue bonds to be issued by California Health Facilities Financing Authority.
Additionally, Moody's affirmed the "Aa3" rating on Sutter Health's outstanding parity debt.
The assignment and affirmation is a result of several factors, including Sutter Health's stable cash flow, powerful presence in northern California, steady asset-liability structure and well funded pension plan.
The outlook on the ratings is stable reflecting Moody's expectation that Sutter's operating margins and balance sheet metrics will improve despite the $3.2 billion capital plan over the next three years.