Moody's Investor Service has revised its outlook to positive from stable on Aspirus Wausau Hospital's A2 rating in recognition of strong operating profitability for a third consecutive year.
The move affects $152 million of debt, including $66 million being sold later this month through the Wisconsin Health and Educational Facilities Authority.
The hospital's balance sheet has seen steady growth in unrestricted cash and investments. Its regional growth initiatives, integration with physicians and affiliate hospitals, and expanded market presence are expected to bolster cash flow.
That should afford Aspirus "the ability to absorb the proposed new debt and complete its major capital project successfully while maintaining favorable liquidity and debt-service coverage levels," Moody's wrote.
Aspirus' main facility is in Wausau, but it also operates five regional affiliate critical-access hospitals and 35 clinics. It commands a leading market share in its region and enjoys strong liquidity that grew by 19% to 197 days' cash on hand last June from 191 days a year earlier.
Its challenges include a high ratio of floating-rate debt at 57%. It also has a large capital program that anticipates $80 million of new debt over the next two years, including $36 million in the upcoming sale for a replacement 25-bed critical access hospital, of which Aspirus Inc. will own 45%.
