Moody's Investors Service has affirmed the "A2" bond rating assigned to Shreveport, La.-based Willis-Knighton Medical Center's $164.4 million of outstanding insured auction rate bonds and revised the hospital's outlook to positive from stable.
The rating affirmation was based on Willis-Knighton's strong 8.4 percent operating margin, 13.7 percent operating cash flow margin and 65.5 percent leading market share in its two-parish primary service area.
The rating affirmation and outlook revision were also supported by the hospital's improved balance sheet metrics, solid operating performance and Moody's belief that Willis-Knighton will successfully manage its IT implementation.
The health system also faces some challenges, which were considered for the rating affirmation, such as its low liquidity, competitive local market and continued capital spending.
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