Moody's Investors Service has affirmed MedStar Health's "A2" rating and revised the health system's outlook to positive from stable.
The affirmation of MedStar's rating affects $1 billion in debt. The affirmation was based on a number of factors, including the health system's market position, sustained improvement in operating margins and strengthened balance sheet.
MedStar also faces some challenges, such as expected increases in capital spending and moderate margins compared with other systems that are similarly rated.
MedStar's positive outlook reflects the health system's improved operating performance and balance sheet measures since the system's rating was upgraded to A2 in 2009.
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