Moody's Investors Service has affirmed Cincinnati-based UC Health's "A3" issuer and bond rating and revised the system's outlook to positive from stable.
Here are four things to know about the rating action and outlook revision.
1. The rating action affects $284 million of debt.
2. The rating affirmation was supported by a number of factors, including UC Health's prominence as the Cincinnati region's only academic medical center and expected moderate capital spending for the next several years, according to Moody's.
3. The system also faces challenges, which were considered for the rating affirmation, such as operating in a competitive market, a high Medicaid and self-pay patient base requiring sizable supplemental funding and modest investment position.
4. The outlook revision reflects growth in UC Health's absolute cash flow and investments, resulting in improved debt metrics for a moderate debt load and Moody's expectation "that this trend will continue given strategies that are driving strong revenue growth."
More articles on healthcare finance:
Fitch upgrades Children's National Medical Center's outstanding debt: 4 things to know
Moody's revises Ochsner Clinic Foundation's outlook to positive
Fitch revises Ochsner Clinic Foundation's outlook to positive: 3 things to know