Moody’s Investors Service upgraded to Aa3 from Baa2 its rating on St. Luke’s Hospital after it officially joined ProMedica Health System.
The upgrade reflects the new security backing $8.3 million of St. Luke’s debt now that the Toledo-area hospital is a member of ProMedica’s obligated group. St. Luke’s and ProMedica command a 42% market share and have modest debt and very strong liquidity of 302 days cash on hand, Moody’s said.
The system faces some pressure from competitors as well as a weak economy, analysts said.
