Moody’s Ratings upgraded Waukesha, Wis.-based ProHealth Care’s credit rating Oct. 19, citing very strong financial performance and liquidity well above peers.
The agency identified disciplined management as a key driver of the upgrade and said it has helped the system reduce debt and strengthen leverage and debt affordability, according to the report.
Moody’s said ProHealth’s liquidity was “exceptional,” with 562 days cash on hand and unrestricted cash and investments of more than 350% of total adjusted debt as of June 30.
Adjusted debt has declined, and Moody’s expects total adjusted debt to adjusted cash flow to stay just below 2 times. ProHealth has no new debt planned.
The four-hospital system holds leading inpatient and outpatient market share in Waukesha County. Its revenue benefits from strong commercial reimbursement and limited exposure to Medicaid. Moody’s listed modest scale, geographic concentration, a shift toward Medicare, and investment and debt-structure risks as credit challenges.
ProHealth has a stable outlook at its new rating.
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