Moody's Investors Service affirmed the "A1" rating on Houston-based Memorial Hermann Health System's outstanding debt, affecting $1.2 billion.
The affirmation is a result of several factors including the health system's strong market position along with its initiatives to reduce expenses and improve operating margins.
The outlook was revised to stable from positive reflecting Moody's unfavorable opinion regarding the poor operating performance, declines in supplemental Medicaid funding and risks associated with payer and service mix changes.