The rating on North Carolina Medical Care Commission's bonds, issued for Catholic Health East (CHE), reflects: * Excellent financial and geographic dispersion combined with a generally successful track record of business growth within the founding affiliates, * A strong financial profile highlighted by sound debt service coverage, cash flow and liquidity for the system as a whole combined with moderate debt levels, * A well thought out governance and management structure, and * The considerable opportunities CHE's creation brings to implement cost savings and system-wide efficiencies to further improve overall financial performance and liquidity. Other rating factors include the concentration of CHE's business' in many highly competitive markets and the still evolving nature of CHE's systems. Also significant is the
