Moody’s Investors Service last week affirmed its A1 rating on the Parkview Health System and revised the outlook to stable from negative, noting the system’s improved operating performance.

Parkview has $561 million of outstanding debt. Moody’s ratings came ahead of the sale of $87 million of hospital revenue bonds through the Indiana Finance Authority.

“The revision in the outlook to stable from negative reflects Parkview’s improvement in operating performance to return to double digit operating cash flow margins and our expectations that initiatives will continue to drive good cash-flow generation,” Moody’s said in the rating report.

Other strengths include the system’s “formidable size,” growing market share, and its 196 days’ cash on hand, analysts said.

Challenges include relatively weak debt measures, growing Medicaid volume and a competitive market.

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