Moody's Investors Service has upgraded the rating on Marriottsville, Md.-based Bon Secours Health System's bonds to "A2" from "A3," affecting approximately $761 million of debt.
The rating upgrade is based on a number of factors, including BSHS' large size, strong governance oversight and improving balance sheet metrics.
Offsetting these strengths is BSHS' large amount of indirect debt, as well as the competitive nature of the markets in which it operates.
The outlook is stable at the higher rating level, reflecting Moody's expectation that BSHS will continue to produce solid operating margins.