Moody's Investors Service has assigned a "Baa2" rating to Camden, N.J.-based Cooper Health System's $150 million of series 2014A revenue refunding bonds.
The rating assignment was supported by a number of factors, including Cooper's improved financial performance. Through eight months of fiscal year 2014, the health system had an operating cash flow margin of 9.2 percent, up from 7.2 percent at the end of FY 2013. In addition, Cooper's unrestricted cash and investments increased to $272 million, or 120 days cash on hand, as of the end of FY 2013, up from $264 million, or 124 days cash on hand, at the end of 2012.
The health system also faces some challenges, which were considered for the rating assignment, including Cooper's challenging payer mix made up of 20 percent Medicaid.
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