Moody's Investors Service has assigned "Aa3" ratings to Boston-based Partners HealthCare System's $580 million of series 2015 bonds and downgraded the ratings on the system's existing debt to "Aa3" and "Aa3/VMIG 1" from "Aa2" and "Aa2/VMIG 1."
The rating assignment was supported by a number of factors, including the system's strong market position and a management team that is committed to reducing operating expenses and improving core operating performance.
Partners also faces some challenges, which were considered for the rating assignment and rating downgrade, such as its insurance division generating significant losses in fiscal year 2014.
The system's outlook is currently stable, which reflects Moody's expectation "that although margins will remain suppressed for at least the next year, the organization's very strong liquidity and other fundamental credit strengths, including leading market share and brand recognition, afford it some tolerance for operational and strategic volatility."
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