Moody's Investors Service said it has upgraded to Aa3 from A1 the rating assigned to Allina Health System's (Allina) $653 million of outstanding bonds issued through the city of Minneapolis and the Housing and Redevelopment Authority of the city of Saint Paul.

The outlook is revised to stable from positive at the higher rating level.

The rating upgrade reflects favorable financial performance in FY 2011, growth in unrestricted cash and investments, improved debt metrics, and a strong management team that has driven these improvements to profitability and balance sheet measures all while implementing progressive strategies in anticipation of health care reform and value-based purchasing.

The stable outlook reflects operating margins, liquidity ratios, and debt metrics will at the very least be maintained, if not improved, over the next 12 to 18 months.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.