Moody's Investors Service has upgraded Indianapolis-based Community Health Network's outlook to positive from stable.
Moody's also affirmed the "A2" rating assigned to $370.1 million of CHN's fixed rate series 2012A bonds issued by the Indiana Finance Authority.
The outlook revision reflects the system's materially improved operating performance in fiscal year 2014 that has been sustained in interim FY 2015. Moody's said it expects CHN will sustain improved results based on management's strategies to grow revenue and reduce expenses.
The rating affirmation was supported by a number of factors, including the system's growing market share in the demographically favorable central Indiana market, and its status as a large community hospital network with an integrated independent and employed physician network, which has driven volume growth, according to Moody's.
CHN also faces challenges, such as modest balance sheet ratios, operating in a highly competitive service area with a number of large regional and national systems and the absence of certificate of need regulations in Indiana.
More articles on healthcare finance:
5 years in: Taking stock of 5 trends set into place by healthcare reform
Marcus & Millichap offering $117M healthcare real estate portfolio: 4 things to know