Moody's Investors Service has upgraded Memphis, Tenn.-based Methodist Le Bonheur Healthcare's bond rating to "A1" and "A1/VMIG1" from "A2" and "A2/VMIG1" on $564.8 million of outstanding debt.
The rating upgrade was based on a number of factors, including the system's maintenance of consistently strong operating performance in fiscal 2014, which continues through the first quarter of fiscal 2015.
Methodist Le Bonheur Healthcare also faces some challenges, which were considered for the rating action, such as operating in a highly competitive market.
The system's outlook is stable.
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