A major debt-rating agency has affirmed Hartford HealthCare’s (HHC) investment-grade bond rating of “A2” and upgraded the health system’s outlook from negative to stable.
New York-based Moody’s Investors Service said it improved HHC’s outlook on about $727 million of rated debt because it believes “HHC will be able to demonstrate ongoing improvement in its margins as a result of strong revenue growth.”
Moody’s said that would offset the system’s “adequate cash metrics and higher, albeit manageable, leverage, if the St. Vincent’s acquisition is finalized.”
Moody’s said it kept HHC’s rating at A2 amid market share gains and its focus on expanding outpatient sites.
Jeffrey A. Flaks, named Thursday as the health system’s next CEO, said HHC is growing its ambulatory surgical, diagnostic and family health centers, and urgent care facilities and home care, to increase its footprint in Connecticut and elsewhere.
“We have been building out a full continuum of care in each of our four regions in Connecticut to provide convenient access to all of the communities we serve,” Flaks said. “Through our institutes, we’ve made it easier to connect with highly specialized and well-coordinated care.”
HHC’s other two bond-rating agencies — S&P Global Ratings and Fitch Ratings — are expected to announce rating decisions in the coming weeks and in 2020, respectively.
