Moody’s Investors Service has revised its outlook on Edward Health Services Corp.’s A2 rating to positive from stable in recognition of its improving operations,  affecting $282.4 million of debt.

“The positive outlook reflects our belief that EHSC will be able to continue to generate strong levels of cash flow, stabilize volumes, and improve debt measures as debt is paid down and no new debt is planned,” analysts wrote.

The hospital’s strengths include a history of strong financial performance over the last five years amid flat volume growth, its location in the wealthy city of Naperville, and strong liquidity with 237 days cash on hand. Its challenges include operating in a competitive market and relatively high variable-rate debt exposure with swap risks that have required collateral postings this year.

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.