NEW YORK - Moody's Investors Service said it has upgraded to A2 from A3 Prince William Hospital, Va.'s bond ratings on $75.2 million of outstanding debt issued through the Manassas Industrial Development Authority, VA. The outlook remains stable at the higher rating level.
The rating upgrade to A2 from A3 and stable outlook reflects PWH's strong financial performance over the last three years, growth in already strong absolute liquidity, improvement of good debt service coverage, and maintenance of strong market share in a competitive service area.
Novant Health (A1/stable) acquired PWH in July 2009 and the agreement provides $240 million for capital projects limiting PWH's future capital spending out of cash flow allowing unrestricted cash and investments to continue to grow.
These favorable indictors are offset by PWH's small size for the rating category, location in the competitive northern Virginia market, and sluggish economic factors in parts of the primary service area leading to high self-pay.