Moody's Investors Service has assigned an "A1" rating to Morristown, N.J.-based Atlantic Health System's proposed $200 million of series 2015 taxable bonds.
The rating assignment was supported by a number of factors, including the system's large size with $2 billion in revenues and broad geographic footprint with four acute care facilities and numerous ambulatory sites, according to Moody's. The rating assignment was also supported by the system's favorable performance and balance sheet metrics.
These attributes are offset by some challenges, such as the competitive northern New Jersey landscape that AHS operates in.
The system's outlook is stable, which reflects Moody's belief that AHS "should continue to perform at current levels and de-leverage over the next two years." While the proposed acquisition of Hackettstown (N.J.) Regional Medical Center is still awaiting regulatory approval, the system should be able to effect a smooth integration given recent mergers of smaller entities, according to Moody's.
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