Illinois Finance Authority — Moody’s affirms Memorial Overall health System’s (d/b/a Memorial Well being) (IL) A1 outlook stable

Rating Motion: Moody’s affirms Memorial Overall health System’s (d/b/a Memorial Overall health) (IL) A1 outlook stableGlobal Credit rating Analysis – 22 Feb 2022New York, February 22, 2022 — Moody’s Buyers Assistance has affirmed Memorial Health and fitness Method [D/B/A Memorial Health (MH)], IL’s A1 revenue bond ranking. The outlook is steady. The program experienced roughly $318 million of personal debt superb at fiscal calendar year-stop 2021.Scores RATIONALEAffirmation of the A1 displays Memorial Health’s (MH) strong equilibrium sheet actions and foremost sector place. Demand from customers will most likely remain steady supplied the system’s tertiary assistance offerings and longstanding alignment with medical professionals at the Springfield Clinic and Southern Illinois University (SIU). Leverage metrics will remain favorable aided by sizeable credit card debt pay back-downs in new decades and a fully funded pension approach. This, alongside with good days hard cash on hand, will give cushion for more reasonable margins relative to historical highs. When integration is progressing, lower doing Decatur Memorial Clinic as properly as MH’s payments to SIU will continue to constrain operating cash flow (OCF) margins. Industrywide labor shortages and pandemic connected quantity disruption will final result in additional margin moderation in fiscal 2022, even though management expects margins to return to much better amounts thereafter. Other challenges involve a the latest and on-likely dispute among the Springfield Clinic and a major industrial payor which could probably disrupt overall performance, supplied MH’s historic reliance on this medical doctor group.Score OUTLOOKThe secure outlook demonstrates Moody’s expectation that margins will probable decrease in fiscal 2022, but make improvements to in 2023, assuming stable need for products and services as properly as ongoing cost reductions. At the same time, the outlook assumes that strong times money on hand and favorable hard cash to financial debt will be sustained following compensation of

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