Moody's Investors Service said it upgrades Methodist Le Bonheur Healthcare's (MLH) bond rating to A1 and A1/VMIG 1 from A2 and A2/VMIG 1 on $564.8 million of outstanding debt issued by The Health, Educational and Housing Facility Board of the County of Shelby, Tenn.
The rating outlook is stable.
The upgrade to A1 reflects the positive resolution of several near term operating challenges facing the organization nine months ago and the maintenance of consistently strong operating performance in FY 2014, which continues through the first quarter of FY 2015.
The A1 also reflects MLH's status as a large tertiary regional referral center with leading and growing market share and a growing liquidity position. These strengths are mitigated by operating in a highly competitive market and a high Medicaid population.
