Moody's Investors Service has affirmed the "Baa1" rating on Manchester, N.H.-based Elliot Hospital's $129 million of outstanding series 2009A revenue bonds issued through the New Hampshire Business Finance Authority.
The rating affirmation was based on several factors, including Elliot's leading market share in Manchester and operating, liquidity and debt coverage measures that are in line with Baa1-rated peers.
These attributes are offset by expected higher future capital spending and competition in the Manchester area.
The outlook has been revised to stable, reflecting Moody's expectation of further improved performance given the 2014 settlement with New Hampshire over Medicaid disproportionate share funding. It also reflects Elliot's improved operating performance and liquidity growth leading to improved debt coverage measures in fiscal year 2015.