Moody’s Investors Service revised its outlook to stable from negative and affirmed its A2 rating on Oakwood Healthcare Inc., a multi-hospital system headquartered in Dearborn.

Oakwood has $359.5 million of outstanding bonds issued through the Michigan State Hospital Finance Authority. More than 95% of the debt is fixed rate, which Moody’s considers a credit strength.

The outlook boost reflects improved liquidity, which grew to 135 days cash on hand from 111 days over the past two years as well as an improving cash-to-debt ratio, according to analysts.

The obligated group includes four acute-care hospitals. Oakwood enjoys a stable market position and several years’ of improving balance sheet measures. Its challenges include a growing Medicaid and self-pay volume amid a weak business environment.

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