Moody's Investors Service has assigned an initial "Ba1" rating to Marshall, Mich.-based Oaklawn Hospital's proposed $73.7 million of series 2016 bonds.
The initial rating assignment is based on a number of factors, including Oaklawn's adequate cash position and role as the area's leading acute care hospital.
Oaklawn also faces several challenges, including its high leverage position and the size and scope of its operations.
The outlook is stable, reflecting Moody's Investors Service's expectation that Oaklawn will keep its strong acute care market position and maintain its current level of operating performance.