AdventHealth Obligated Group (formerly Adventist Health System/Sunbelt Obl Grp) : Update to credit analysis

Moody's assigns Aa2 to AdventHealth Obligated Group's (FL) Ser. 2023; outlook stable - Rating Action – 2023/05/25 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

AdventHealth Obligated Grp (f/k/a Adventist Health System/Sunbelt Obligated Grp): Update to credit analysis - Credit Opinion – 2022/07/01 – US$ 250.00 – ...AdventHealth (AH, Aa2 stable) will benefit from its large scale, highly centralized model and well-tenured management team with demonstrated ability to cut costs to realize strong operating cash flow (OCF) margins and low operating leverage. Its history of consistently strong operating performance supports the likelihood that, following a weak Q122 attributed to a rise in agency staffing and COVID-related volume reductions, AH will be able to achieve still solid OCF margins in 2022 and show continual improvement, returning to strong historical levels by 2024. Returning to and sustaining favorable margins and low operating leverage would help offset days cash that will remain solid but well below peers. Management will also refrain from additional borrowings as it looks to improve cash to debt and debt to cash flow metrics following several debt financed initiatives since 2019. Atypical of multistate systems, revenues and cash flow will continue to be heavily concentrated in Florida. To...

AdventHealth Obligated Group (formerly Adventist Health System/Sunbelt Obligated: Update to credit analysis - Credit Opinion – 2021/10/20 – US$ 250.00 – ...AdventHealth (AH, Aa2 stable) will benefit from consistently strong operating cash flow (OCF) margins, large scale and still relatively low, albeit higher operating leverage following a rise in debt. This will help offset days cash that will remain solid but below peers. Following over a 30% increase in absolute debt since 2019 associated with several initiatives, including the acquisition of Redmond Regional Medical Center (Redmond), cash to debt and debt to cash flow metrics will be less favorable than historical levels. However, these metrics will likely improve as management focuses on deleveraging. Atypical of multistate systems, revenues and cash flow will continue to be heavily concentrated in Florida. These highly competitive markets will be a key ongoing challenge, exacerbated by recent elimination of CON regulation in Florida. The Redmond transaction brings some risk as AH attempts to increase its presence in Georgia where it currently has very minimal assets. Sector-wide challenges...

Moody's assigns Aa2 to AdventHealth Obligated Group's (FL) Ser. 2021E; outlook stable - Rating Action – 2021/10/19 – US$ 180.00 – ...MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER. ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY'S PRIOR WRITTEN CONSENT. MOODY'S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT...

AdventHealth Obligated Group : Update to credit analysis - Credit Opinion – 2021/06/02 – US$ 250.00 – ...AdventHealth (AH, Aa2 stable) will benefit from strong operating cash flow margins, large scale and relatively low operating leverage as measured by debt to cash flow despite a recent increase in debt. This will help to offset cash metrics (including days cash and cash to debt) that will remain solid but below peers. AH increased debt levels in fiscal 2020 to help fund several initiatives including the system's conversion to a new IT system, and the 2020 purchase of minority ownership in Health First, which will expand AH's network into Brevard County, Florida. This follows the acquisition of four Florida hospitals from CHS in 2018 and 2019. Atypical of multistate systems, revenues and cash flow will continue to be heavily concentrated in Florida, where AH will increase its presence. Florida's highly competitive markets will provide a key risk to AH going forward; recent elimination of state CON regulations will exacerbate this risk. If finalized, AH's agreement to purchase Redmond Regional...