Moody's Investors Service has affirmed the "A1" unenhanced rating assigned to Irving, Texas-based CHRISTUS Health's $805 million of outstanding rated bonds and revised the system's outlook to negative from stable.
The rating affirmation was supported by a number of factors, including CHRISTUS' leading market share in four of its eight markets. The affirmation was also supported by the system's improved balance sheet metrics, with a reduction in debt load in fiscal year 2014.
The outlook revision was based on the low margins CHRISTUS reported in FY 2013 and 2014. In fiscal 2014, the system posted an unfavorably low 5.8 percent cash flow margin. In addition, CHRISTUS' unrestricted liquidity fell 7 percent in fiscal 2014.
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