Adena Health Maintains Strong Credit Ratings
Adena Health announced today that two national credit rating agencies have reaffirmed its “A” rating and financial stability. Moody’s Investors Service affirmed the health system’s “A3” credit rating with a stable outlook and Standard and Poor’s Global Ratings reaffirmed the organization’s “A-” rating with a negative outlook. The outlook revisions cite the ongoing challenges faced nationally by non-profit health systems and hospitals in recent years due to industrywide labor shortages and inflation.
Each year, Adena Health leaders present the organization’s profile, market trends, strategies and financial position to the two New York-based rating agencies. The rating agencies then publish a rating of credit strength. A strong credit position enhances the organization’s ability to execute on its strategic plans and look at future growth opportunities to better serve Adena Health’s nine county service region.
“During this challenging period in health care when many hospitals in Ohio and nationwide are being downgraded, we are very pleased to have our credit affirmed by both Standard & Poor’s and Moody’s,” said Jim McManus, chief financial officer. “The affirmations are reflective of the ongoing focus in executing our operational effectiveness program that will improve our operating margin and allow us to continue to provide care to our local communities.”
In its analysis, Moody’s Investors Service stated, “Adena Health System's leading market position will be strengthened as management continues to gain market share through successful execution of its hub and spoke strategy, with various access points and regional partnerships throughout the service area.”
Standard & Poor’s Global Ratings’ report noted, “The rating reflects our view of Adena's historically healthy financial profile…” and “…also reflects our view of Adena's continued strengthening of its brand and expansion of its local and regional partnerships.”