Moody's Investors Service has assigned an "Aa3" rating to Dallas-based Baylor Scott & White Health's proposed $554.28 million of series 2015 taxable bonds issued by Baylor Scott & White Holdings.
The rating assignment was supported by a number of factors, including the BSWH's status as the largest nonprofit system in Texas and its good liquidity.
The system also faces some challenges, which were considered for the rating assignment, such as having a moderately leveraged operating and balance sheet position.
The system's outlook is stable, which reflects Moody's expectation that BSWH "will achieve its fiscal year 2015 operating budget, which represents stability to 2014 and further progress on integration initiatives, maintenance of unrestricted investments, and no material new debt issuance beyond the proposed offering."
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