Moody's Investors Service has assigned an "A1" rating to Allentown, Pa.-based Lehigh Valley Health Network's proposed revenue bonds, affecting approximately $477 million of series 2015A bonds to be issued through the Lehigh County General Purpose Authority.
The rating assignment was supported by a number of factors, including Lehigh Valley's position as the leading healthcare system in the region, its strengthening of operating margins, its strong investment portfolio and the projected cash flow that should allow the system to fund its capital when combined with the additional leverage associated with current financing.
A prolonged narrowing of operating metrics below FY 2014 levels could make the rating go down.
The system outlook is stable.