EGH bond rating outlook positive
Moody's affirmed the credit rating of Elkhart General Hospital, citing positive effects of the merger with Memorial Hospital of South Bend.
Posted on Nov. 15, 2012 at 12:00 a.m.
ELKHART — Moody’s Investors Service affirmed Elkhart General Hospital’s A2 bond rating and revised the rating outlook from stable to positive, reversing the momentum from last year’s downgrade from an A1 rating.
Moody’s cited the merger into Beacon Health System, improved financial performance and growing cash balances as the positives.
Fewer admissions, the local unemployment level and area competition, as well as plans to make $89 million in capital expenditures over the next two years were cited as challenges. Successful execution of the merger with Memorial Health System could result in the rating going up, according to Moody’s.