Moody's Upgrades to A1 CentraCare Health System, Minn.

Moody's Investors Service said it has upgraded to A1 from A2 the rating assigned to CentraCare Health System's bonds.

The outlook is stable at the higher rating level.

The rating upgrade and stable outlook reflect continued strong financial performance that exceeds Moody's A1 medians, material improvement in liquidity balances over the past several years, management's efforts to decrease risk in the hospital's debt and capital structure, completion of a new patient tower, and market dominance in CentraCare's service area.

Challenges include CentraCare's leverage position, which compares unfavorably to the A1 medians, as well as a sizeable swap collateral posting.

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