Moody's Takes Fletcher Allen Health to Positive

Moody’s Investors Service has revised the outlook on Fletcher Allen Health Care to positive from stable, affecting $330 million of outstanding debt.

Moody’s also affirmed the Baa1 rating on the medical center, located in Burlington, Vt.

“The revision of the outlook to positive from stable reflects several years of improving operating performance, coupled with improving balance sheet metrics,” analysts said.

Moody’s also cited as a strength the important role as the only tertiary hospital and academic medical center and provision of unique services within its service areas.

Challenges include flat population trends in Vermont and an increase in capital spending through 2017, largely due to a master facility plan.

Fletcher Allen will likely issue $75 million of new money debt in 2014 to support these projects.  

For reprint and licensing requests for this article, click here.
Healthcare industry Vermont
MORE FROM BOND BUYER