Moody’s Upgrades Stormont-Vail HealthCare to A1; Outlook Stable

Moody’s Ratings upgraded Stormont-Vail HealthCare’s issuer rating to A1 from A2 and revised the outlook to stable from positive at the new rating level. Total debt outstanding was $181 million at the end of the 2023 fiscal year, last Sept. 30.

Moody’s press release issued late Wednesday stated, “The upgrade to the A1 reflects the expected maintenance of strong liquidity and excellent debt measures, supported by stable operating performance. Additionally, ongoing investments in SVH's secondary service area will contribute to good volume trends supporting additional cashflow growth.”

The A1 rating is based on several factors, including Stormont Vail’s strong market position, a large and aligned physician group, and the organization’s recent expansion into the rapidly growing Manhattan market with the opening of the Manhattan Campus, providing primary and specialty care, and imaging and lab services in one location.

The stable outlook reflects Moody’s expectation that Stormont Vail can restore operating performance to stronger levels, as well as maintain strong balance sheet measures.

“We are honored by the recent Moody’s rating upgrade. It reflects the hard work and dedication in providing high quality and safe care across the Stormont Vail system, in addition to maintaining a very solid financial base,” said Dr. Rob Kenagy, President and Chief Executive Officer of Stormont Vail Health. “I am very proud of our team members and all they are achieving across our region.”

Moody’s Ratings, previously Moody’s Investors Service, Inc., is the bond credit rating business of Moody’s Corporation.